Circuit City says not closing more stores

The company, which is currently closing 155 of its 722 stores, issued a statement responding to a Credit Suisse research note that said it planned to shutter more outlets.

"Circuit City has not announced any plans for additional store closures," the retailer said in its statement.

Credit Suisse later corrected its research note from analyst Gary Balter.

"In our Best Buy note published earlier this morning, we erroneously stated that Circuit City received permission from a federal bankruptcy court to close an incremental 150 stores and break the leases associated with the stores," Credit Suisse said in its corrected note.

"We have since learned that the bankruptcy court ruling was related to stores that had already been announced would be closing.

"No new incremental store closings have been announced since the company's November 3rd press release," Credit Suisse added.

The initial Credit Suisse note had said "Circuit City's move to close an additional 150 stores will likely make it that much harder to survive, in our view." The note added that Circuit City closures would benefit main rival Best Buy Co .

Circuit City said it filed court notice on Wednesday that it was seeking to reject leases on 154 of the 155 stores it is closing. The company canceled an auction of these leases that had been set for Thursday after it did not receive enough bids.

Circuit City filed for Chapter 11 protection last month in its headquarters city of Richmond, Virginia.

(Reporting by Karen Jacobs; Editing by Tim Dobbyn and Andre Grenon)