Circuit city seeks incentives for wind-down team

Posted by Colby Rogers - email

RICHMOND, VA (AP) - Circuit City is asking a bankruptcy judge for permission to pay executives and other workers extra to stay with the company as it winds down.

The company said $4.63 million in bonuses is needed to dissuade 154 employees from leaving before what was the nation's second-largest electronics retailer closes for good.

The Richmond-based retailer said if those employees meet all the targets set for them, then that will boost the company's value about $250 million.

A hearing on the request is scheduled for Wednesday afternoon in Richmond.

Last month circuit city announced it would liquidate its 567 U.S. stores, cutting more than 34,000 jobs. Going-out-of-business sales should last through March, after which the stores will be closed. A small staff will continue working at the corporate office throughout the process.

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