SHERMAN, Tex. - Just weeks before the holiday shopping season, Circuit City says it will close 155 stores across the nation, including the Sherman location. Rita Kotey has more.
Monday's announcement comes just nine months after the store's grand opening. Circuit City in Sherman celebrated their grand opening in January of 2008, and corporate officials say they are shutting it down in an effort to return the nation's No. 2 consumer electronics retailer to profitability. Officials say they have had only one profitable quarter in the past year, and that they have seen significant decline in traffic because of competition, with stores like Best Buy.
While we have not been given an exact date for when this particular store will be closing, Circuit City corporate officials said Monday morning that it will shutter 155 of its more than 700 stores in 55 markets by Dec. 31. Circuit City also said it will further reduce new store openings and plans to work with landlords to renegotiate leases, lower rent or terminate agreements.
The Sherman store employs about 40 people. Circuit City corporate officials have not given them any information or specifics on what they plan to do with employees.
The store will possibly have a liquidation sale in the next week, we are told, and will not be open Tuesday. Store closing sales should begin on Wednesday.
Circuit City customers like Bab Hankins were quite surprised when we told them the Sherman store was among those closing.
"With the upcoming change of the digital broadcast, I was trying to get a TV before everybody makes a mad dash for TVs, but you know they are saying that they are closing That's surprising, but everything's changing now-a-days."
Circuit City officials say they have also put a freeze on opening any new stores that may have been in the works. They say all 155 stores should be officially closed by December 31.
The Texas other stores closing are in Burleson, Cedar Park, Dallas, Houston, League City, Mansfield, McKinney, and Temple.
The Associated Press contributed to this report.