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14 Apr 2009
Systemax has applied to buy bankrupt electrical retailer Circuit City’s e-commerce business, CRN US has reported.
Circuit City’s demise last year sent shockwaves through the industry and caused credit insurers to reach for their calculators as the credit crunch started to take hold.
According to CRN US, Systemax has made a ‘stalking horse’ bid for the business, totalling $6.5m (£4.4m) in cash, to the Bankruptcy Court for the Eastern District of Virginia, Richmond Division. The bid is subject to bankruptcy court approval and auction procedures.
Further reading
If completed, the purchase would add to Systemax's existing TigerDirect e-commerce offering.
In a statement, the firm told CRN US that the move would allow Systemax to “extend leadership in online sales of value-priced, branded consumer electronics.”
Systemax also said that it will not go through with the agreement if a higher or better bid for the assets is submitted and approved by the court. The company also said that if Circuit City’s e-commerce business is bought for a higher or better price, or if Circuit City ends the agreement, then Systemax will be able to claim break-up fees and expenses.
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