We knew Circuit City had serious problems and we knew that filing for bankruptcy was a possibility. Well it happened folks! The favorite shop for some will close all of its stores as it failed to reach an agreement which would have helped it stay afloat.

Circuit City has $2 billion in debt and it has requested approval from the bankruptcy court to liquidate its assets and close the 567 stores in the U.S. and possibly the 765 stores in Canada.

James A. Marcum chief executive of Circuit City said:

We are extremely disappointed by this outcome. The company has been in continuous negotiations regarding a going concern transaction. 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.

Circuit City is down, who is going to follow?