Circuit City to close for good

Circuit City has admitted defeat and will close all 567 US stores

Embattled US electronics retailer Circuit City is to shut down permanently, after announcing on Friday that it would begin a complete liquidation of its assets in order to cover debts.

The liquidation will mean the closure of 567 stores across America, and the loss of some 30,000 jobs.

"We are extremely disappointed by this outcome," said president and chief executive James Marcum.

"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 time available, and this is the only path for our company."

The move brings an unfortunate end to a tumultuous stretch for Circuit City. The company announced in early November that it would close 155 stores in a cost-cutting measure, and revealed just one week later that it would be forced to file for Chapter 11 bankruptcy protection.

The company is still determining what will happen to its other ventures, including its web sites and a chain of retail outlets in Canada.