Friday, electronics retailer Circuit City Stores announced that it would be liquidating its assets and closing down hundreds of stores after the attempt to clinch a deal in order to sell the business had failed.

Circuit City, which is the second largest retailer in the United States in terms of electronics, asked for approval to begin liquidation from the U.S. Bankruptcy Court in Richmond, Virginia.

Vice Chairman James Marcum stated that the company had been unable to strike an agreement  with creditors and lenders, therefore liquidation had unfortunately remained the last resort.

Recently, shares for Circuit City dropped 74 percent to 4 cents and the company said that it did not expect that any value would remain for common shareholders from the bankruptcy estate.

Circuit City announced that it planned to begin closing down stores as of Saturday, while it had approximately $1.3 billion in inventory to liquidate.

Not long ago, the electronics retailer filed for Chapter 11 protection, reasoning that several vendors had threatened to halt delivering products during the previous holiday season and pulled the plug on 155 stores, which left it with a number of 567 stores in the United States.

At that time, in November, the company’s U.S. and Canada operations filed for bankruptcy protection, which allowed them to continue doing business while they developed a new organizational strategy to help them reposition the consumer electronics retailer.

Court filings for bankruptcy protection read that the main reasons that stood behind Circuit City’s decision had been erosion of vendor confidence, decreased liquidity and the global economic crisis.