On May 19, Systemax closed on its agreement to acquire certain
trademarks, trade names, domains, customer lists and information as
well as other intangible assets of Circuit City’s e-commerce business.
The purchase price was $14 million in cash plus a share of any future
revenue generated utilizing those assets over a 30-month period. Under
the terms of the agreement, the minimum future revenue guaranteed to
Circuit City is $3 million.
Systemax sells consumer electronics
online, by direct mail and in retail stores under the TigerDirect and
CompUSA brands, which it acquired last year. The company is in the
process of remodeling its CompUSA stores in the US using its Retail 2.0
shopping system, which is designed to bring the best of the Web to the
The new CircuityCity.com site features enhanced
content, including photo galleries and videos of thousands of most
popular consumer electronics and computer products.
is one of the iconic brands in US electronics retailing with a
60-year legacy,” said Richard Leeds, chairman and CEO at Systemax, in a
statement. He added that with its experience in consumer electronics
retail, “Systemax is uniquely positioned to best carry forward the
great Circuit City brand in the online space.”
Circuit City’s e-commerce business at an auction earlier this month, after
entering a stalking horse agreement with Circuit City in April. The
latter began liquidating assets in January after filing for bankruptcy
protection in November.