| NEW YORK
NEW YORK May 12 Consumer electronics seller
Systemax Inc (SYX.N) has won a bankruptcy auction for the
e-commerce business and intellectual property of Circuit City
Stores Inc CCTYQ.PK, according to an adviser on the deal.
Streambank, an intellectual property consulting firm
retained by Circuit City on the deal, said the transaction was
subject to court approval from the U.S. Bankruptcy Court in
Richmond, Virginia, on Wednesday.
Systemax, which sells consumer electronics at CompUSA
retail stores and TigerDirect.com, said previously that it
believed the transaction would allow it to continue building
its online retailing business.
Systemax had been the "stalking horse," or lead bidder, for
the assets, originally submitting a bid for $6.5 million in
cash plus a share of future revenue generated from those assets
over a 30-month period.
The amount of the winning bid was not immediately clear.
Gordon Brothers Brands and Hilco Consumer Capital, which
specialize in brand name licensing, had said previously that
they were also interested in bidding on Circuit City's assets.
Circuit City, which had been the No. 2 retail player in the
U.S. consumer electronics space, filed for bankruptcy
protection last November, but was forced to liquidate after
failing to reach a deal to sell the company. The company has
sold off its Canadian business, and had planned the sale of its
website since it announced its liquidation.
At the auction, Circuit City had previously said in court
documents that it planned to sell its Internet-related
property, customer information, and intellectual property,
including its brand name and trademarks.
Systemax recently appointed Enas Raynor, a former Circuit
City executive who developed the chain's "The City" concept, as
its new vice president of business development.
The case is In Re: Circuit City Stores Inc, U.S. Bankruptcy
Court, Eastern District of Virginia, No. 08-35653.
(Reporting by Chelsea Emery, writing by Emily Chasan, editing
by Lisa Von Ahn)