RICHMOND, Va. (AP) - In an effort to make itself profitable again, Circuit City says it's closing about 20 percent of its U.S. stores.
The electronics retailer says the 155 stores to be shut down will not open tomorrow, but on Wednesday they'll begin store closing sales.
The Richmond, Virginia-based company has been operating more than 700 stores in 55 markets across the country. The closings will prompt the layoff of about 17 percent of Circuit City's U.S. work force. The company is also cutting plans for store openings.
Circuit City has had only one profitable quarter in the past year. Its stores have seen a significant decline in traffic as they face heightened competition from Best Buy and others. The company says its vendors have taken restrictive actions and that the "current mix of terms and credit availability is becoming unmanageable."
The store in Dothan will still be open but the location in Panama City and Tallahassee are closing their doors.
(Copyright 2008 by The Associated Press. All Rights Reserved.)