Circuit City, the troubled consumer electronics chain, provided more evidence of the downturn in US retailing yesterday when it unveiled plans to cut more than 7,000 jobs and begin liquidation sales at a fifth of its stores as it tries to stay afloat.

The retailer was facing problems before the financial crisis worsened in late September. But it said the subsequent steep fall in consumer confidence and tightening credit market conditions had made it increasingly difficult to secure credit from some of its suppliers.