April 9, 2009
Circuit City: valuable brand name or toxic asset? Some people apparently are willing to pay $6.5 million to find out.
The failed electronics retailer, which filed for bankruptcy in November, is taking bids on its brand, trademarks and e-commerce business. It has identified one friendly bidder: Systemax Inc., which last year bought the intellectual property of another failed electronics retailer, CompUSA. At least 40 other bidders have also looked into buying Circuit City’s assets, according to the Associated Press.
So, what do you think, Peeps — smart move or wasted money? If the e-commerce business comes with a ready-made customer list, maybe it’s a smart move. But if all that’s being sold is the brand name of a gigantic failure, perhaps one could name better uses for 6.5 large.