ATLANTA Jan 14 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
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 tigher 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.
(Reporting by Karen Jacobs; Editing by Gary Hill)