RICHMOND, Va. (AP) – Circuit City is looking to sell its brand, trademarks and e-commerce business to Systemax, the same company that purchased CompUSA’s intellectual property in 2008.
According to bankruptcy court filings, the Richmond-based company has entered into a so-called stalking horse agreement with Systemax for $6.5 million. A stalking-horse bid is an initial offer on a bankrupt company’s assets from an interested buyer chosen by the company.
The agreement also includes payments of a scaled percentage of revenues coming from the site.
Other companies should have an opportunity to bid on the assets, if a federal bankruptcy court judge grants a motion for a May 11 auction at a hearing Tuesday.
Circuit City closed its remaining U.S. stores last month and has laid off about 34,000 workers since filing for bankruptcy protection in November.