Systemax bids on Circuit City's intellectual property, e-commerce business
Bankrupt retailer Circuit City Stores Inc. has entered a stalking horse agreement with multichannel electronics merchant Systemax Inc. to acquire its brand, trademarks and e-commerce business for $6.5 million, according to a report from the Associated Press.
A stalking horse agreement is an initial offer for a bankrupt company's assets from an interested buyer chosen by the company.
Systemax manufactures and sells consumer electronics via the TigerDirect brand. In January 2008, it acquired the intellectual property of bankrupt CompUSA.
There will an opportunity for other companies to bid on Circuit City's intellectual property if a federal bankruptcy court judge grants a motion for an auction next month.
CircuitCity.com is currently closed and has posted a page informing visitors that the company anticipates “the Web site will reopen in the coming weeks.”