On the heels of acknowledging that the company has met with potential buyers, the nation’s second-largest consumer electronics retailer today announced that it would begin liquidating its assets.

 

The announcement from bankrupt Circuit City Stores, Inc. feeds a ravenous unemployment rate, as the company’s estimated 35,000 workers at 567 outlets face joblessness.

 

James A. Marcum, vice chairman and acting president and chief executive officer for Circuit City, said the company is “extremely disappointed by this outcome.”

 
“The company had been in continuous negotiations regarding a going concern transaction,” Marcum said. “Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company.”

 

The company said it would provide more details soon, but said that no value will remain from the bankruptcy estate for the holders of Circuit City’s common equity, “although this will be determined in the continuing bankruptcy proceedings.”

 

Liquidation proceedings end a roller-coaster week for the retailer.

 

As TMCnet reported, the company this week announced on its Web site that it was meeting with two interested parties on a potential sale.

 

Officials at the Richmond, Virginia-based company had said that the interested parties could provide additional financing to allow Circuit City to continue operating or could buy the company outright.

 

“The parties have substantially completed due diligence and now are in negotiations with the company and the company’s major stakeholders in order to finalize such a transaction,” company officials said.

 

According to Reuters’ (News - Alert) reporters Karen Jacobs and Cyntia Barrera Diaz, a spokesperson for Ricardo Salinas Pliego said the Mexican retail and media entrepreneur had been conducting a thorough analysis of Circuit City. He owns TV Azteca, Mexico’s No. 2 broadcaster, and retail chain Grupo Elektra, which operates in nations such as Mexico, Brazil and Argentina.

 

According to Jacobs and Barrera Diaz, insiders also said that entertainment industry investor Mark Wattles may also be interested in Circuit City.

 

Yet the company now faces liquidation, just two months after filing for Chapter 11 protection.