SPANISH FORT, Ala—Circuit City Stores Inc. has announced that plans to open the already-constructed Spanish Fort Town Center store have been terminated due to the economy’s downfall, according to a news release.

One-hundred 55 out of 700 stores in 55 markets will close by Dec. 31, the release said.

“The company is making a number of difficult, but necessary decisions to address our financial situation as quickly as possible,” Jackie Foreman, spokeswoman for the Richmond,Va.,-based company said in an e-mail. “We deeply regret the impact this announcement will have on our associates, our guests and the communities where these stores are located.”

The store located in the Festival Centre in Mobile will remain open, the release said.

For the company’s 2008 fiscal year, approximately $1.4 billion was generated from the stores that will close, the release said. The stores had a lower average net sales, lower gross profit margin and lower close rate compared to the stores that will remain in operation.

The company will continue to operate 566 stores throughout the U.S. after a 17 percent reduction of  its workforce, the release said.