Circuit City Stores Inc., the bankrupt electronics retailer that closed its U.S. stores last month, agreed to sell its trademarks and Internet domain names to computer seller Systemax Inc. for $6.5 million.
Circuit City asked a judge to name Systemax the so-called stalking-horse bidder at a May 11 auction to consider competing offers, according to papers filed April 10 in U.S. Bankruptcy Court in Richmond, Virginia, where Circuit City is based.
“The sale of the intellectual property and Internet assets would bring significant recovery for the sellers’ estates and creditors,” Circuit City said in its filing. The retailer seeks a May 13 hearing to consider approval of the winning bid.
Under the proposed sale, Circuit City would get a share of sales from the brand name. Systemax, based in Port Washington, N.Y., agreed last year to buy the CompUSA name and some stores for about $30 million after the retailer shut its doors amid competition from Best Buy Co. and Wal-Mart Stores Inc.
Circuit City sought court protection in November during a deepening U.S. recession that claimed retailers including Linens ‘n Things Inc. and Mervyn’s LLC. Circuit City had planned to exit Chapter 11 and continue operations.
In January, after negotiations with prospective buyers failed, Circuit City said it would go out of business. The company, with debt of as much as $2.32 billion, shut 567 U.S. stores and fired 34,000 workers.