Circuit City Edges Closer to Online Rebirth
Consumer electronics reseller Systemax Inc won a bid for the former No. 2 electronics retailer’s e-commerce business.
We haven’t seen the last of Circuit City, or at least of circuitcity.com.
As part of Circuit City’s bankruptcy proceedings it auctioned off its e-commerce business and intellectual property, according to Reuters.
The winner: Systemax Inc, a consumer electronics seller which already sells through CompUSA and TigerDirect.com.
We already knew that Circuit City was likely to make an online comeback and we knew that Systemax was the top suitor. In the aftermath of its store liquidations and closings, it posted this message on circuitcity.com/closed:
“CircuitCity.com is also temporarily closed, although we anticipate the website will reopen in the coming weeks.”
The amount of the winning bid, which is subject to bankruptcy court approval on Wednesday, is unknown at this point, according to Reuters. However, Systemax’s original bid was reportedly $6.5 million in cash plus a portion of short-term earnings.
The electronics retail industry is becoming a lot like the world of soap operas in that dead doesn’t necessarily mean dead anymore. Identifiable brands are hot commodities and several failed companies have recently been reborn.
Investors even plan to bring Crazy Eddie back to life.
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