May 1, 2007
The Richmond-based company Circuit City announced that dismal earnings are expected for their first quarter profits.
The announcement has sent shares in the company plummeting. The company, which has already laid off workers and cut costs, is blaming poor widescreen TV sales for its first quarter lost.
Circuit City is also withdrawing its earning outlook for the first half of the fiscal year. It says it's withdrawing the outlook because of uncertainties in the current operating environment.
Along with the announcement of letting 3,400 high paid workers go in March to replace them with low paid workers, the company has also said that it will be closing seven domestic stores, a Kentucky distribution center and 62 company-owned stores in Canada.