• Richmond Times-Dispatch, Tuesday, April 14, 2009 10:45 AM

Bankrupt Circuit City Stores Inc. is auctioning off its brand, trademark and Web site presence to the highest bidder. Systemax Inc., which sells personal computers, consumer electronics and accessories online, through catalogs and in some retail stores, has been named as its stalking-horse bidder, Emily C. Dooley reports.

A stalking-horse bid is an initial offer from a company chosen by the debtor. Systemax, which also owns the rights to the CompUSA name according the Wall Street Journal, has agreed to pay Circuit City a share of revenue generated through the Web site during the first 30 months of ownership. If Systemax does not win the rights, Circuit City has agreed to pay it $250,000, as well as attorney's fees up to $75,000.

Circuit City will seek approval of the agreement today in U.S. Bankruptcy Court in Richmond, Va. If approved, the deadline for bids, which must be $350,000 more than Systemax' initial offer, is May 6. If competing bids are made, an auction will be scheduled for May 11 in the New York offices of Skadden, Arps, Slate, Meagher & Flom LLP, which represents Circuit City.

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