Here’s an excerpt from Circuit City’s press release issued Friday morning:
On January 5, 2009, the company filed a motion with the Bankruptcy Court that seeks 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.
Presently, the company is engaged in significant discussions, meetings and negotiations with two highly motivated and interested parties concerning the terms of a going concern transaction. These interested parties are considering providing additional financing to allow the company to sustain operations and move forward with a subsequent restructuring through a stand-alone plan and/or purchasing the company or all or substantially all of the company’s assets.
The motion currently provides that an auction of the company and its assets would commence on January 13, 2009, and a sale hearing would occur on January 16, 2009.
If no agreement is approved with a party interested in a going concern transaction by January 16, 2009, and the auction does not result in a sale of the company’s assets, the motion provides that the company may enter into a transaction that will result in an asset liquidation process commencing soon after the sale hearing scheduled for January 16, 2009, absent any further amendment to the DIP (debtor-in-possession) credit agreement deadlines.
Circuit City filed for bankruptcy protection in November. It completed the closure of 155 underperforming U.S. stores in November and December, including a location in Foothill Ranch. The chain currently has at least 11 stores in O.C.
More from OC Retail:
- Another big store at The Block closes
- Clothing maker has major expansion in O.C.
- What may replace Virgin Megastore at The Block
- Closing date for Virgin Megastore at The Block
- The Block to get discount department store
- Kohl’s to move into 3 O.C. Mervyn’s stores
- Forever 21 to move into O.C. Mervyn’s store
- Downtown Disney store to close
- Macy’s exec addresses store closure rumors
- $35 movie ticket may be coming to O.C.
- Office Depot plans to close 112 stores
- 1,000-plus store closures expected after Christmas
- Quiksilver to close 25 stores
- Surf shop at The Block closes
- O.C.-based oil-change chain in bankruptcy
- KB Toys going out of business
- Clothing retailer to close as many as 100 more stores
- Downtown Disney store owner files for bankruptcy
- O.C. called 6th best U.S. market for mall owners
- Drugstore opens its first high-end beauty store in O.C.
For more from OC Retail, see list of links on right-hand side of this blog.
