For a bankrupt retailer, when the stores are closed and the merchandise is auctioned off, all that's left is often the intellectual property. And depending on the company, that IP can generate plenty of interest from potential buyers. That seems to be the case for the bankrupt electronics retailer Circuit City Stores Inc.
On Monday, Systemax Inc. (NYSE:SYX), which sells electronics online, by direct mail and in retail stores, announced its had signed
a stalking-horse agreement to acquire Circuit City's brand, trademark and Web site to for $6.5 million. But that price could definitely go higher. Court filings indicate up to 40 parties interested in bidding for the assets during a proposed May 11 auction.
According to
The Associated Press, the group includes Hilco Merchant Resources LLC and its joint venture partner Gordon Brothers Retail Partners LLC. That's no surprise. The liquidation firms are frequent bidders in bankruptcy auctions and have been active in the Circuit City Chapter 11 case since being hired in January to conduct store closing sales at 155 Circuit City locations.
Hilco and Gordon Brothers also liquidated stores of bankrupt Sharper Image Corp., and went on to be part of a JV that acquired and is now
licensing the Sharper Image brand to other retailers. Systemax also has experience with distressed assets. It acquired the CompUSA brand in 2008 and now sells products through resuscitated CompUSA stores and under the brand name.
- Suzanne Stevens
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Juergen Lasowski
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The Sharper Image is definitely making a comeback! Sharper Image has decided to enter the age of ecommerce and is moving its products from catalogs to the internet. Just another way companies can "Go Green!"