Circuit City announced Friday it will begin liquidations of all of it’s remaining 567 stores beginning Saturday (yesterday). Someone could still step up and purchase all or part of the company to rescue it but it’s highly unlikely at this point. 34,000 employees will be let go as stores begin to close which is expected to be completed by March 31, 2009. The company said in it’s press release that employees will receive 60 days notice of termination. If they are layed off prior to that they will receive pay for the full 60 days.
What’s the point of laying them off before the 60 days then? If they stay at work at least your getting something for your payroll expenses.
One bright spot is Circuit City’s website business which tops $1 Billion in an average year. That alone could attract a potential buyer for it’s online business. That could lead to less loses on the backend if you’re a vendor that sold merchandise to the company.
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