RICHMOND, Va., Nov. 10 /PRNewswire-FirstCall/ -- Circuit City Stores, Inc.
today announced that the New York Stock Exchange ("NYSE") has suspended the
company's common stock effective immediately. The NYSE reached this decision
in light of the company's announcement to file a voluntary petition for
reorganization relief under Chapter 11 of the United States Bankruptcy Code in
the United States Bankruptcy Court. As previously announced, the company also
was not in compliance with the NYSE's price criteria for common stock because
the average closing price of the company's common stock was less than $1.00
per share over a consecutive 30-trading-day period as of October 22, 2008.
The company noted that not being listed on the NYSE is not a default under the
company's debtor-in-possession revolving credit facility.
The company's common stock is currently trading over the counter and is
being quoted on the Pink Sheets service under the ticker symbol CCTYQ. The
company intends to take appropriate steps to maintain an active trading market
for its common stock but can provide no assurance that there will be an active
trading market.
The company does not intend to take any further action to appeal the
NYSE's decision, and therefore it is expected that the common stock will be
delisted after the completion of the NYSE's application to the Securities and
Exchange Commission.
About Circuit City Stores, Inc.
Circuit City Stores, Inc. is a leading specialty retailer of consumer
electronics and related services. At October 31, the domestic segment
operated 712 Superstores and 9 outlet stores in 165 U.S. media markets. At
September 30, the international segment operated through 770 retail stores and
dealer outlets in Canada. Circuit City also operates Web sites at
www.circuitcity.com, www.thesource.ca and www.firedog.com.
Forward-Looking Statements
Statements made in this release, other than those concerning historical
financial information, may be considered forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 and are
subject to risks and uncertainties. These forward-looking statements include,
without limitation, statements regarding the company's expectations concerning
an active trading market for its common stock. Actual results may differ
materially from those included in the forward-looking statements due to a
number of factors, including, without limitation, the following: (1) the
impact of the announcement to seek reorganization relief on the company's
operations; (2) the ability of the company to continue as a going concern; (3)
the ability of the company to obtain approval of and operate pursuant to the
terms of the DIP facility; (4) the ability of the company to obtain court
approval of the company's first day papers and other motions in the Chapter 11
proceeding pursued by it from time to time; (5) the ability of the company to
develop, pursue, confirm and consummate one or more plans of reorganization
with respect to the Chapter 11 cases; (6) risks associated with third parties
seeking and obtaining court approval to terminate or shorten the exclusivity
period for the company to propose and confirm one or more plans of
reorganization, for the appointment of a Chapter 11 trustee or to convert the
cases to Chapter 7 cases; (7) the ability of the company to obtain and
maintain normal terms with vendors and service providers; (8) the ability of
the company to maintain contracts that are critical to its operations; (9)
potential adverse developments with respect to the company's liquidity or
results of operations; (10) the ability of the company to fund and execute its
business plan; (11) the ability of the company to attract, retain and
compensate key executives and associates; (12) the ability of the company to
attract and retain customers; (13) any further deterioration in the
macroeconomic environment or consumer confidence; (14) the success of the
company's store liquidators, and the prices obtained, in selling inventory in
the stores that the company is closing; and (15) the company's receipt of the
income tax refund from the federal government. Discussion of additional
factors that could cause actual results to differ materially from management's
projections, forecasts, estimates and expectations is set forth under
Management's Discussion and Analysis of Results of Operations and Financial
Condition in the Circuit City Stores, Inc. annual report on Form 10-K for the
fiscal year ended February 29, 2008, the quarterly report on Form 10-Q for the
fiscal quarter ended August 31, 2008, and in the company's other SEC filings.
A copy of the annual report is available on the company's investor information
Web site at http://investor.circuitcity.com.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010709/CCLOGO )
SOURCE Circuit City Stores, Inc.
