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Hard times just got a little harder. Circuit City, the second largest consumer electronics retailer in the U.S., will close all stores and liquidate assets, according to a press release. This is the end for Circuit, which had already filed for bankruptcy in November 2008.

"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 the CEO in a prepared statement.

Without refinancing, Circuit was forced to sell the contents of its 567 U.S. stores to liquidators. Four close-out specialists have been named and set to work. By the time that process is complete, there will be nothing left for owners of common stock. Worse, more than 30,000 people will go jobless.

In addition to the refinancing option, Circuit had been seeking a buyer, but in vain. At one point Blockbuster made an offer of $1 billion, but after examining Circuit's books, walked away from the deal. Other potential buyers included Ricardo Salinas Pliego, a Mexican investor, and Golden Gate Capital, a private equity firm. Time ran out on a possible sale when vendors sitting on the creditor committee lost patience and declared the process over. However, bids are still being considered for Circuit's 765 stores in Canada.

"Very, very sad," said Alan Wurtzel, son of the company founder. "I feel particularly badly for the people are employed or until recently were employed." Wurtzel left Circuit in 2001. His father had founded the company in 1949 as a single store in Richmond, Virginia.

Most retailers (barring Walmart and Amazon) are suffering right now. But there are reasons why Circuit has suffered more.

Circuit has made some bad decisions over the years. One was its support of Divx, a self-destructing version of the DVD that was intended to replace disc rentals. DVD fans regarded it as a threat to the format and many said they would never shop at Circuit again.

And even before the recession hit, the chain also singled out some of its most qualified employees in cost-cutting layoffs, which made the sales floor a less hospitable place for consumers.