Struggling electronics retailer Circuit City Stores Inc. today reported a loss in the fiscal first quarter that was greater than in the same period a year ago.

Sales fell 7.4 percent in the quarter that ended May 31. The Henrico County-based retailer also said it has suspended future dividend payments.

And Circuit City said it filed paperwork with the Securities and Exchange Commission that would give the chain greater flexibility in making strategic decisions, such as accepting bids to sell itself.

Despite the poor quarterly results, the company said it was in good shape to move forward.

Circuit City, which has come under increasing fire from investors who have called for sweeping leadership changes, reported a net loss of $164.8 million, or $1 a share, in the quarter. That compares with a loss of $54.6 million, or 33 cents, in the same period a year earlier.

Circuit City said sales dropped to $2.30 billion for the quarter compared with $2.49 billion for the same quarter in 2007. It was the company's fifth consecutive quarter of declining sales.

On Tuesday, rival Best Buy Co. Inc. said its first-quarter profit dropped 7 percent, but that beat Wall Street expectations. Net income for the company dipped to $179 million from $192 million.

Circuit City has used up about 75 percent of its cash that it had on hand since the end of last year's first quarter. The retailer had cash or cash equivalents of $92.2 million at the end of this May, dropping from $364.1 million at the end of the year-ago period.

Given current credit conditions, not having adequate cash reserves could prove troublesome for the company as it tries to turn itself around, experts said.

The chain said it was not worried. While it will borrow money in the second quarter to buy merchandise for the holiday season later this year, Circuit City said it will not need to borrow money in the third quarter.

While the board suspended future dividend payments, the company said, "We continue to believe that we have adequate liquidity to fund our turnaround but would prefer to conserve capital."

Circuit City and other electronics retailers have struggled with falling sales recently as shoppers cut back on discretionary purchases amid weak housing and credit markets and rising food and gas prices.