Bankrupt US technology retail chain Circuit City completed the liquidation of its stock last month and is now in the process of winding up rest of the business.
One of its assets that's still worth something is the brand, especially online. Just as when Richer Sounds bought the online brand of Empire Direct earlier this year, there are some companies interested in the Circuit City brand and the bidding has been opened by US tech etail giant Systemax.
In a brief statement yesterday, Systemax said it: "...has signed a ‘stalking horse' agreement to purchase selected assets of Circuit City's e-commerce business for $6.5 million in cash plus a share of future revenue generated utilizing those assets over a 30 month period."
The definition of ‘stalking horse' is unclear, but it seems to be legalese for ‘dipping your toe in the water'. By that we assume Systemax is initiating the auction process by submitting a relatively low bid and being offered some compensation of a higher bid comes in.
If it succeeds in its bid, Systemax will add another big brand to that of CompUSA, which it bought the ecommerce and some retail outlets of when it got into trouble. The core Systemax etail brands are Tiger Direct in the US and Misco in Europe.
To get more of an idea how Systemax/Misco is able to keep growing and acquiring when so many other technology retailers are struggling, watch our exclusive interview with the general manager of Misco UK here.