April 13, 2009 by Steve Crowe
Circuit City is looking to sell its brand, trademarks and Web site to Systemax, the Associated Press reports.
The two companies have entered a “stalking horse agreement,” an initial offer for a bankrupt company’s assets, for $6.5 million.
The agreement includes two and one-half years of payments to Circuit City of a portion of Systemax’s revenue from the Circuit City Web site.
According to court filings, there are about 40 parties interested in buying the defunct big-box retailer’s assets. They can all make bids on acquiring Circuit City’s property, pending a court ruling that would grant a May 11 auction.
Circuit City, which closed for good on March 8, has hinted at a potential online comeback. The company’s Web site says, “Circuit City.com is also temporarily closed, although we anticipate the website will reopen in the coming weeks.” This deal with Systemax appears to be what Circuit City was talking about.
Systemax, of course, purchased CompUSA when it went bankrupt, relaunching the brand under the TigerDirect and CompUSA brands.
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