Richmond, Va. - Unable to secure either a buyer or additional funding, consumer electronics retailer Circuit City (NYSE: CC) on Friday reached a deal to liquidate the remaining merchandise at its 567 U.S. stores. "We are extremely disappointed by this outcome," said James Marcum, the vice chairman and acting president and CEO of Circuit City. "The company had been in continuous negotiations regarding a going concern transaction. Regrettably... we were unable to reach an agreement with our creditors and lenders."

The news comes less than a week after Circuit City, which filed for Chapter 11 bankruptcy protection in November, said that it was in "significant" talks with two "highly motivated and interested parties."

Last spring, movie rental giant Blockbuster made a bid to acquire the chain for more than $1 billion, but later withdrew its offer, citing market conditions.

Circuit City, which currently has more than 30,000 employees, has hired Great American Group, Hudson Capital Partners, SB Capital Group and Tiger Capital Group to assist in the liquidation.

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