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.
Clickhereto read TWICE’s complete coverage of Circuit City.