ATLANTA (Reuters) - Circuit City Stores CCTYQ.PK concluded the first day of an auction and said it was still in talks with bidders regarding a potential sale of the company or certain assets.
Lawyer Ian Fredericks of Skadden Arps Slate Meagher & Flom LLP. which represents Circuit City, made the announcement on a conference call to discuss the proceedings.
Circuit City filed for Chapter 11 protection in November, citing a deteriorating cash position and tighter terms from vendors. It has liquidated and closed 155 stores, about one-fifth of its U.S. store base.
Last week, the retailer received bankruptcy court approval to proceed with an auction, with liquidation possible if no sales occurs. Also then, Circuit City said it was in talks with two undisclosed parties that could either buy the company or provide additional financing.