Circuit City in Talks With Two 'Interested Parties'

Richmond, Va. -- Circuit City (CC Quote) said Friday it is in talks with two interested parties about the terms of a going concern transaction.

A going concern is a company that has the resources to stay in business. Circuit City, the second-largest electronics retailer in the U.S. after Best Buy (BBY Quote), filed for bankruptcy protection in November as it faced pressure from vendors and as consumer spending waned.

Monday, the company filed a motion with the bankruptcy court seeking approval for its sale as a going concern, either as separate units or as individual assets.

Circuit City said Friday the interested parties, which it did not name, are considering providing additional financing to allow the company to sustain operations and move forward with a subsequent restructuring plan.

Circuit City said the talks could result in a sale, or the company and its lenders could amend its debtor-in-possession credit agreement before a Jan. 16 sale hearing.

In addition, the Richmond, Va., company said that, as planned, it closed 155 stores in the U.S. in November and December that were not performing well or were "no longer a strategic fit."