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Circuit City received an unsolicited takeover bid of $3.25 billion from Highfields Capital Management LP to take the company private.

Circuit City has been struggling to compete with Best Buy in the consumer electronics industry.

Circuit City's Board of Directors is carefully evaluating the proposal, and other alternatives available to the Company, taking into account the potential benefits that may be realized through the Company's strategic, operational and financial initiatives, and the risks associated with them. The Company has retained Goldman, Sachs & Co. to assist the Board in its evaluation.

"While the Board evaluates the Highfields proposal with the help of outside advisors, we on the Circuit City management team, as well as our more than 40,000 Associates across North America, must and will focus on continuing to meet the needs of our customers and business partners, continuing to implement steps aimed at improving our strategic, operational and financial performance and, in turn, achieving our number-one goal: building value for our shareholders," said W. Alan McCollough, chairman and CEO of Circuit City.

Circuit City said it will close 19 superstores, five regional offices and a distribution center by the end of February.

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