Circuit City, whom filed for bankruptcy protection back in November, is now closing all of its stores as it has failed to attract any potential buyers. The company said it has reached an agreement with Hudson Capital Partners, SB Capital Group, and Tiger Capital Group to liquidate its 567 U.S. stores.

Circuit City announced Monday that it plans to close 155 under performing stores in the U.S. in order to stay a float. Some analyst predict that a bankruptcy is unavoidable at this point. Circuit City is also renegotiating its leases in order to help preserve capital.

Circuit City has agreed to allow Blockbuster to examine the company's documents. Blockbuster has offered to acquire Circuit City for nearly $6 a share; however, there is some doubts on rather Blockbuster will be able to successfully finance the $1 billion needed for the transaction.

Shares of Circuit City dropped over 35% to a 16 year low after the company released that its losses for the quarter ending November 30th were over four times as steep as analysts estimates. For the quarter Circuit City reported a net loss of $207.3 million or $1.26 a share, compared to loss of $20.4 million or 12 cents a share for the same quarter a year prior. Revenue for the quarter dropped by... More