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Circuit City idles headquarters workers: paper

ATLANTA (Reuters) - Electronics retailer Circuit City Stores Inc <CC.N>, which began liquidation sales at 155 of its stores this week, is cutting hundreds of jobs at its headquarters in Richmond, Virginia, the Richmond-Times Dispatch newspaper reported on its Website on Friday.
/ Source: Reuters

ATLANTA (Reuters) - Electronics retailer Circuit City Stores Inc , which began liquidation sales at 155 of its stores this week, is cutting hundreds of jobs at its headquarters in Richmond, Virginia, the Richmond-Times Dispatch newspaper reported on its Website on Friday.

The newspaper, citing a Circuit City employee who lost her job, said 500 to 800 people were being let go locally, and added that about 1,000 workers who remained would be consolidated into one building.

Circuit City is based in Richmond, Virginia.

"Out of respect for our associates, we're not commenting," Circuit City spokesman Jim Babb said when asked about the published report.

On Monday, Circuit City said it would close 155 stores in big markets such as Phoenix and Atlanta and cut its U.S. work force by 17 percent, citing strains on its cash position and tightening credit terms from vendors.

The No. 2 electronics retailer said suppliers pinched by the global financial crisis and credit crunch in some cases were now requiring up-front payment for inventory before they would make shipments. It added that some suppliers were not providing customary increases in credit lines for holiday purchases.

Circuit City also said a recent third-party appraisal of its inventory had reduced the amount it can tap under a $1.3 billion line of credit.

The retailer, which will operate about 566 U.S. stores after the closures, has posted losses in five of the past six quarters and shed market share to main rival Best Buy Co and mass merchants such as Wal-Mart Stores .

Circuit City shares were down 7.2 percent to 24 cents in afternoon trading. The company has been notified by the New York Stock Exchange that its shares were subject to delisting because the average closing price was less than $1.00 a share for a 30-day trading period.

Best Buy shares were down 14 cents at $25.62.

(Reporting by Karen Jacobs; Editing by Bernard Orr)