Circuit City Seeks To Sell Brand, Web Site

MICHAEL FELBERBAUM

RICHMOND, Va. (AP) — 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.

Richmond-based Circuit City, also a shuttered electronics retailer, has entered a so-called stalking horse agreement with Systemax for $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.

Port Washington, N.Y.-based 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.

Systemax believes the transaction would "further extend its position as a leader in online retailing of value-priced, branded consumer electronics," the company said in a statement.