Circuit City was due to present the results of an auction for its assets at a hearing in U.S. Bankruptcy Court in Richmond, Virginia, on Friday. It had conducted negotiations with potential bidders to sell the company, but told the court last week it may need to liquidate if no deal was reached.

The company did not immediately respond to a request for comment about the liquidation, but a spokesman said a statement should be issued shortly.

Shares of the bankrupt electronics chain fell 53 percent to 7 cents.

Circuit City filed for Chapter 11 protection in November, citing a deteriorating cash position and tighter terms from vendors. It has liquidated and closed 155 stores, about one-fifth of its U.S. store base.

(Reporting by Karen Jacobs, editing by Dave Zimmerman)