Bankruptcy Court documents from Jan. 5 were unsealed Friday, showing Circuit City Stores Inc. is
seeking approval of procedures that would formally put the company up for sale, as a going concern, as separate business units or as individual assets -- including the sale of inventory. Mexican retail and media mogul Ricardo Salinas Pliego, who has built up a stake of at least 28% in the company, is conducting a thorough analysis of Circuit City, Reuters
reported.
If the plan is to tap the Mexican market, they will have to contend with Best Buy Co. At the Consumer Electronics Show in Las Vegas, BB chief Brad Anderson said he plans on opening
stores in Mexico.
We might as well mention that, in 2003, Mexican billionaire Carlos Slim and his family owned 9% of Circuit City's shares and
made an offer that would have valued the company at $1.66 billion.
The Richmond, Va.-based electronics retailer filed for bankruptcy protection in November as it posted losses for seven of the last eight quarters. The Journal
noted Circuit City said it sought bankruptcy law protection because its standing with suppliers crumbled in a matter of days after it disclosed its worsening financial state and store closings.
In its announcement, Circuit City said it had "two highly motivated and interested parties" that could buy the company. The No. 2 U.S. electronics retailer did not name them. As of Dec. 31, it operated 567 stores in 153 U.S. media markets, while internationally, it operated through approximately 765 retail stores and dealer outlets in Canada. -
Baz HiralalSee Circuit City's announcement
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