UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 16, 2005
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CIRCUIT CITY STORES, INC.
(Exact name of registrant as specified in its charter)
Virginia
(State or other jurisdiction of
incorporation or organization)
001-05767 54-0493875
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(Commission (I.R.S. Employer
File No.) Identification No.)
9950 Mayland Drive, Richmond, Virginia 23233
(Address of principal executive offices) (Zip Code)
(804) 527-4000
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
SECTION 2 - FINANCIAL INFORMATION
Item 2.05 Costs Associated With Exit or Disposal Activities.
On February 16, 2005, Circuit City Stores, Inc. issued a press release
announcing the closing of 19 Superstores and five regional offices. The closings
are expected to be completed by the end of the current month. The press release
is attached as Exhibit 99.1 to this report.
Based on continuing analysis of markets across the country, the Company has
identified 19 Superstores located in trade areas that the Company believes can
no longer support a Circuit City Superstore, leaving the locations with no
reasonable expectation of positive cash flow and without relocation
opportunities over the near term. In many larger markets in which the Company is
closing stores, it has added incremental stores in more vital trade areas or
relocated stores to more attractive sites. The repositioning its stores within
these markets continues, and it no longer makes financial sense to keep some of
the stores in those markets open.
The closings were authorized by Circuit City's board of directors on February
15, 2005 and communicated to affected employees on February 16, 2005.
Circuit City expects to incur expenses of approximately $30 million after tax in
conjunction with the store and regional office closings. The costs relate to
lease contract termination costs of approximately $22 million after tax, other
associated costs such as fixed asset disposals of approximately $7 million after
tax and one-time termination benefits of approximately $1 million after tax. The
costs will be recorded in the fourth quarter of the current fiscal year. The
termination benefits and the lease termination costs will result in future cash
expenditures.
SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
Exhibit No. Description of Exhibit
99.1 Press release issued February 16, 2005
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CIRCUIT CITY STORES, INC.
By: /s/Philip J. Dunn
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Philip J. Dunn
Senior Vice President, Treasurer,
Corporate Controller and
Chief Accounting Officer
Date: February 21, 2005
EXHIBIT INDEX
Exhibit No. Description of Exhibit
99.1 Press release issued February 16, 2005