America's second largest consumer electronics chain Circuit City to close 155 stores due to weak sales and diminishing margins.

Circuit City is a big chain of retail stores with 46,000 employees and 62,000 crore turnover annually and 710 stores in the United States and many stores and franchisee outlets in Canada.

Circuit City mainly sells electronic goods, personal computers, software and games through its retail stores.

Out of 710 stores in the US, company is planning to close 155 by end of this year and will cut 17% of its workforce.

In last many quarters Circuit City posted loss and these measures are to make this Fortune 500 company to a profitable one.

In last 6 months Circuit City shares has plunged almost 94% due to weak sales. In last November Circuit City share was quoting at $10 and now it is at just $0.26.

After the news about layoffs Circuit City shares posted a big rally of almost 38 percent and jumped to $0.36.

Next few months are important for the retail giant as America is entering to shopping season. But this time Christmas and New Year shopping may not bring much sales to retails companies as Consumer Spending and Consumer Confidence are at multi-year low.