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Systemax Agrees To Purchase Circuit City Assets
1:30 PM EDT Mon. Apr. 13, 2009
Systemax also bought the CompUSA brand in 2008, hoping to leverage that retailer's brand in the marketplace, and has its own Tiger Direct online retail presence.
The Richmond Times Dispatch, citing bankruptcy court documents, said Systemax and Richmond, Va.-based Circuit City have entered into a stalking horse agreement, which is an initial offer for a bankrupt company's assets.
The agreement calls for Circuit City to receive a portion of Systemax's revenue from the Circuit City Web site for two-and-one-half years. Competing bids must be at least $350,000 more than Systemax's initial offer, according to the newspaper.
Court documents indicated Systemax, based in Port Washington, N.Y., was one of two companies competing to become the initial bidder, according to the Times-Dispatch. Previously, the Hilco Organization had shown interest, according to the newspaper. Hilco and another company bought the assets of Linens 'N Things in February.
Circuit City's Web site states only that the company was closing its stores on Jan. 16, 2009 and that CircuityCity.com is temporarily closed. "We anticipate the website will reopen in the coming weeks. Please check back for updates," the Web site said.
Last month, Systemax's CompUSA added a 35-person business-to-business sales team with offices in Boise, Idaho and Sioux City, S.D.
"This new business-to-business marketing force is a reflection of our strong position and our long-term strategic expansion plans," said Gilbert Fiorentino, CEO of the Technology Products Group at Systemax, in a statement last month.
CompUSA still has 23 brick-and-mortar stores, considerably fewer than the 126 stores it operated in better times. The stores are now located mainly in Florida, with two more to open there next week. In addition, there are some outlets in Illinois, North Carolina, Texas and one in Puerto Rico.
