[UPDATE]Circuit City Officially For Sale?
Word from an inside source at Circuit City is the company has until January 16, 2009 to find a buyer or they will be up for liquidation. This comes months after filing for chapter 11 bankruptcy in November of 2008. We also assume this may affect The Source, the Canadian branch of Circuit City if these rumors hold any truth to them.
Keep in mind since this comes from a “inside source” it is still considered a rumor and for all we know could be completely false. If your one to dance on graves, expect to see products at significantly reduced prices if Circuit City is unable to find a buyer. We believe the term worth “more alive than dead” applies, although with the state of the world economy that saying may hold little value.
[Via Loot Ninja]
[UPDATE] It seems these rumors are true according to a press release, Circuit City states they are in talks with two parties to “secure funding”,
Presently, the company is engaged in significant discussions, meetings and negotiations with two highly motivated and interested parties concerning the terms of a going concern transaction. These interested parties are considering providing additional financing to allow the company to sustain operations and move forward with a subsequent restructuring through a stand-alone plan and/or purchasing the company or all or substantially all of the company’s assets. The parties have substantially completed due diligence and now are in negotiations with the company and the company’s major stakeholders in order to finalize such a transaction. While the company is optimistic that a transaction can be successfully finalized, no assurance can be given that this will occur.
A buyout/merge? Or a new source of funds?