Circuit City will liquidate assets - Kansas City Business Journal:

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Circuit City (NYSE: CC), which said that it wouldx close all five of its area will ask the bankruptcy court for approval to beginmliquidating assets. The company owes Garmin GRMN) more than $15.4 million. A call to the Olathe-based navigatiob device-maker was not immediately returned. “We are extremelt disappointed bythis outcome,” Circuit City’s acting CEO, James Marcum, said in the release.
“The companty had been in continuous negotiationsw regardinga going-concern Regrettably for the more than 30,000 employeex of Circuit City and our loyal we were unable to reach an agreemen t with our creditors and lenders to structur a going-concern transaction in the limited time frams available, and so this is the only possible path for our More details will be availables soon about plans to liquidate stores and other assets, along with other the company said. Circuit City, based in Va., filed Chapter 11 bankruptcy in , planninv to keep operating its business without interruption while its management developedda corporate-restructuring plan.
It earlier had announcesd plans to close 155underperforming U.S. including the local ones. The company voluntarily filed bankruptcy inthe U.S. Bankruptch Court for the Eastern District of Virginia in listing $3.4 billion in assets and $2.3 billioj in debts. Circuit City said its Canadianb operations also would seek protectioj in Canada underthe Companies’ Creditors Arrangemeny Act. Garmin was the seventh-largest creditor listed in Circuitf City’s bankruptcy filing. On Jan. 9, Circuit City said it was in talke with two potential buyers that couldf keep the chain operational and that it was optimisticx about reaching a deal by when a sale hearinbwas scheduled.
Without a deal by the companyhad said, it may pursue liquidation. In Garmin spokesman Ted Gartner said the company was continuiny to supplyCircuit City. The bankruptcy filing requiredc those that had been doing business with the debto r to continuedoing so, he said, addinhg that Garmin was assessing the situation to make sure it was protecte d and could recoup costs. “Certainly, Circuit City’zs bankruptcy was not unexpected,” Gartner said at the “Our management have been talking with their management for at leasty the lastsix weeks. ... They’vre been a great retailer of oursfor many, many and we have got a lot of respectg for them.
I think we’re working together amicabl to make sure they get the productt they wantto get.” In 2007, Garmin had revenued of $3.2 billion and earnings of $855