NEW YORK, May 12 (Reuters) - 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)
Our Standards: The Thomson Reuters Trust Principles.