January 15, 2009 / 2:51 AM / 9 years ago

Circuit City still in talks over potential sale

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.

<p>The logo for Circuit City store is seen in New York November 10, 2008. Circuit City Stores Inc, the No. 2 U.S. consumer electronics retailer, filed for bankruptcy protection on Monday just a few weeks before the start of the key holiday shopping season, becoming the largest retailer to file under Chapter 11 this year. REUTERS/Shannon Stapleton</p>

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.

Reporting by Karen Jacobs; Editing by Gary Hill

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