Circuit City Stores Inc. hopes to sell its brand, trademarks, and e-commerce business to Systemax Inc., the same company that purchased electronics retailer CompUSA's intellectual property when it closed in 2008.
Circuit City has entered a so-called stalking horse agreement with Systemax for US$6.5 million, according to bankruptcy court filings. A stalking horse bid is an initial offer for a bankrupt company's assets from an interested buyer chosen by the company. The agreement also includes two and one-half years of payments to Circuit City of a portion of Systemax's revenue from the Circuit City Web site.
Systemax manufactures and sells consumer electronics online, by direct mail and in retail stores under the TigerDirect and CompUSA brands. When it bought Dallas-based CompUSA's intellectual property in January 2008 from restructuring firm Gordon Brothers Group LLC, it also acquired some stores.
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