Circuit City Brand, Web Site Sold For $14M

MICHAEL FELBERBAUM

RICHMOND, Virginia (AP) — Bankrupt Circuit City's brand, trademarks and e-commerce business were sold on Wednesday for $14 million to Systemax Inc., the same company that purchased electronics retailer CompUSA's intellectual property when it closed in 2008.

U.S. Bankruptcy Court Judge Kevin R. Huennekens approved the results from an auction that took place Monday. New York-based Systemax also agreed to pay Circuit City at least $3 million from its revenue from the assets over 30 months.

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 has said the transaction would "extend its position as a leader in online retailing of value-priced, branded consumer electronics."

Last month, Richmond-based Circuit City entered a so-called stalking horse agreement with Systemax for $6.5 million, which also included a revenue payout over two and a half years. A stalking horse bid is an initial offer for a bankrupt company's assets.