567 Circuit City stores are to close, as, echoing the UK's Woolworths saga, a buyer cannot be found to rescue the chain.

The second largest consumer electronics retailer in America, the chain filed for bankruptcy in autumn last year after revealing it was over $2 billion in debt.

Circuit City Stores, Inc. has now announced it is to begin the process to liquidate the assets of the company.

"We are extremely disappointed by this outcome. The company had been in continuous negotiations regarding a going concern transaction. Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company", said James A. Marcum, vice chairman and acting president and chief executive officer for Circuit City.