Circuit City Stores Inc. has shelved plans to open two new Hawaii locations due to financial troubles and the slumping economic environment.

The Richmond, Va.-based company, which announced this week that it would close 155 stores throughout the nation by year's end, has pulled out of agreements to open at Kapolei Commons in West Oahu and Kona Commons in Kailua-Kona on the Big Island.

MKC Management LLC, a joint venture of the MacNaughton Group and Kobayashi Group, which is developing the regional malls, said the national electronics chain decided not to sign a lease four months ago for a Kapolei retail outlet, but hasn't officially pulled out of its signed lease agreement for the Kona store.

Circuit City representatives confirmed that it would not move forward with the Kona store - which was slated to open in April - due to a major companywide restructuring.

“;Certainly it's due to the challenges to our business and the continued weak economic environment,”; said Jackie Foreman, Circuit City spokeswoman. “;We're undertaking several restructuring actions immediately. They're difficult but necessary decisions to address our financial situation as quickly as possible.”;

The company, which has more than 700 U.S. stores spread throughout 28 states, will continue to operate its Pearlridge location and hasn't made any announcement of layoffs there.

But earlier this week it said it would lay off about 17 percent of its domestic work force, or up to 7,300 people at roughly 20 percent of Circuit City's stores nationwide.

The strategic move to close hundreds of stores and cut thousands of jobs is in hopes to survive the latest pressures being put on retailers with consumers reluctant to spend and vendors less eager to provide credit.

As part of its restructuring, the company will further cut back on new store openings and plans to renegotiate leases with landlords, lower rent or terminate agreements while it deals with tightening credit from its vendors.