Circuit City seeks to sell brand, Web site

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by Associated Press

NWCN.com

Posted on August 15, 2009 at 1:33 PM

Updated Thursday, Sep 24 at 12:34 PM

RICHMOND, Va. - Circuit City is looking to sell its brand, trademarks and e-commerce business to Systemax, the same company that purchased CompUSA's intellectual property in 2008.

According to bankruptcy court filings, the Richmond-based company has entered into a so-called stalking horse agreement with Systemax for $6.5 million. A stalking-horse bid is an initial offer on a bankrupt company's assets from an interested buyer chosen by the company.

The agreement also includes payments of a scaled percentage of revenues coming from the site.

Other companies should have an opportunity to bid on the assets, if a federal bankruptcy court judge grants a motion for a May 11 auction at a hearing Tuesday.

Circuit City closed its remaining U.S. stores last month and has laid off about 34,000 workers since filing for bankruptcy protection in November.

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