Richmond, Va. — The fate of Circuit City could be determined today as the company’s financing runs out and a federal bankruptcy court considers bids to break up the business or buy it whole.
According to a report today in The Wall Street Journal, three parties have emerged as contenders to acquire the No. 2 CE specialty chain. As was widely speculated, they include Mexican billionaire Ricardo Salinas Pliego, a banking, broadcasting and retail tycoon who bought up 28 percent of Circuit City shares last fall.
Also entering the auction was Golden Gate Capital, a San Francisco-based private equity firm. The Journal cited “people familiar with the situation” who said the investment group has requested a 30-day extension to analyze the retailer’s books.
The third bid came from liquidators Gordon Brothers Retail Partners and Hilco Merchant Resources, which together would sell off Circuit City’s inventory in a final fire sale. The paper’s sources said this scenario would be the likely outcome.
The bankruptcy court is scheduled to convene here this morning at 10 a.m.
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