Bankrupt Circuit City has sought court approval to close its remaining 567 U.S. stores and sell all its merchandise. The company said its Canadian operations, which employ 3,000 workers, will continue to operate.
The big electronics retailer (#2 after Best Buy) said it had reached an agreement with four companies to start the liquidation process.
If the court approves, the sale would begin Saturday and run until March 31.
"This is very significant. It shows you how bad things are for the the retail industry," said George Whalin, president and CEO of Retail Management Consultants.
Whalin said management mistakes over the past few years combined with the recession brought down Circuit City.