updated 11:55 am EST, Fri January 9, 2009
Circuit City in Sale Talks
Circuit City on Friday morning made public that it's currently in talks with an unnamed company to potentially sell off its assets following its bankruptcy. The retailer declines to provide any more details than required by a hearing pushing the details into the open but confirms that two "highly motivated" companies are discussing the possibility of deals that would either give the company enough money to continue on and restructure itself or else to effectively buy out the resources of the entire store chain.
The firm cautions that it's possible no deal will take place but does explain that both of the anonymous companies have already conducted the due diligence needed to explore whether an agreement is fiscally reasonable.
A takeover of Circuit City would create a major shift in the electronics retail business, which in North America is currently led by Best Buy and has resulted in retail deals for the iPhone 3G and other exclusive or near-exclusive devices going directly to the market leader. Circuit City is considered one of the few remaining nationwide competitors and also has an influence in Canada through the smaller chain The Source.