Circuit City Projects 24% Average Comp-Sales Decline12 Nov, 2008 By: Erik Gruenwedel
Bankrupt Circuit City Stores said it expects same-store (open at least 12 months) sales to fall more than 24% on average weekly through the end of the year compared to the same period last year, according to a court filing.
The Richmond, Va.-based No. 2 consumer electronics retailer issued the projection as part of a 13-week cash flow assessment included in its $1.1 billion debtor-in-possession budget, approved earlier this week.
Beginning with the week ending Nov. 15 through Dec. 27, Circuit City projects average weekly revenue of more than $310 million, or more than $2.1 billion in revenue through the end of the year.
For the first six weeks of 2009 from Jan. 3 through Feb. 7, Circuit City projects average 15% weekly declines in same-store sales with average weekly revenue of nearly $160 million, or more than $960 million.
The retailer expects to generate more than $3.4 billion in revenue over the 13-week period, including $57.6 million in net available cash.
It expects to spend $52.7 million on store closing related expenses.
Circuit City filed for Chapter 11 bankruptcy protection Nov. 10 with $2.3 billion in debt in U.S. Bankruptcy Court for the Eastern District of Virginia.