Circuit City Close To Being Sold… Or Liquidated

Circuit City announced today that it is close to finalizing a deal to sell all or part of its operation to one of two undisclosed potential buyers— but if the deal falls through— the store could be liquidated.

Circuit City says:

Presently, the company is engaged in significant discussions, meetings and negotiations with two highly motivated and interested parties concerning the terms of a going concern transaction. These interested parties are considering providing additional financing to allow the company to sustain operations and move forward with a subsequent restructuring through a stand-alone plan and/or purchasing the company or all or substantially all of the company’s assets.

The statement goes on to say that the company feels that the transaction will probably be successful, but that it can’t guarantee anything.

If there is no sale by next Friday it seems that Circuit City could be liquidated, according to a motion unsealed today by the bankruptcy court.

Circuit City Stores, Inc. Provides Update [Circuit City] (Thanks, Sean!)
Circuit City in talks with 2 ‘interested parties’ [Richmond Times-Dispatch]
(Photo: Ben Popken )