Although they are accepting offers from buyers who intend to keep the retail operation going — Bloomberg reports that Circuit City is taking bids from liquidators — including the notorious Gordon Brothers (of CompUSA fame.)
Circuit City Stores Inc.’s assets may be bought by companies that would sell off remaining merchandise and shut down the second-largest U.S. consumer-electronics chain, according to two people familiar with the planned bids.
Hilco Merchant Resources LLC, Great American Group LLC and Hudson Capital Partners are part of two separate groups of liquidators that planned to submit offers for the retailer, said the people, who declined to be identified because the auction process isn’t public.
Gordon Brothers Retail Partners LLC and Tiger Capital LLC also are among potential buyers that would liquidate Circuit City’s assets, the people said. Liquidators buy the assets of distressed companies, which can include unsold merchandise, store displays and shelving, computer systems and other technology. Circuit City leases most of its stores.
For those of you new to the liquidation game — these companies are notorious for raising prices before discounting them.