Circuit City Stores, Inc. Statement Regarding NYSE Move to Delist Common Stock
November 10 2008 - 8:50PM
PR Newswire (US)
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
http://www.circuitcity.com/, http://www.thesource.ca/ and
http://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 )
http://www.newscom.com/cgi-bin/prnh/20010709/CCLOGO
http://photoarchive.ap.org/ DATASOURCE: Circuit City Stores, Inc.
CONTACT: Bill Cimino, Director of Corporate Communications,
+1-804-418-8163, or Jessica Clarke, Investor Relations,
+1-804-527-4038 Web site: http://www.circuitcity.com/
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