The rumors about Circuit City closing stores has been confirmed with an official press-release.

Circuit City says that due in part to its deteriorating liquidity position and the continued weak macroeconomic environment, the company has decided to take certain restructuring actions immediately, including closing 155 domestic segment stores, reducing future store openings and aggressively renegotiating certain leases.
Circuit City also is considering all available options and alternatives to restructure its business. Circuit City plans to close 155 stores that are underperforming or are no longer a strategic fit for the company. The stores identified for closure are located in 55 U.S. media markets, of which Circuit City will exit 12 U.S. media markets.
The list of closing stores can be found by visiting the company's investor information page and clicking the link regarding today's announcements. Circuit City expects that impacted stores will not open on Tuesday, November 4th, and the store closing sales will begin on Wednesday, November 5th. Circuit City expects the sales to be completed no later than calendar year end.
So if you neighborhood Circuit City is on the list, you might be able to score a deal in the closing sales.
Circuit City launched the Gifts to Love Sale. You can try to find a deal to show the retailer some much needed love.
Via this Circuit City announcement.