http://www.internetretailer.com/dailyNews.asp?id=30424


Systemax systematically wins its bid for CircuitCity.com
There’s still the formality of approval by a bankruptcy court judge, but Systemax Inc. is the apparent winner of the auction to acquire the assets of CircuitCity.com.

On Monday in the New York office of Circuit City’s bankruptcy law firm, Skadden, Arps, Slate, Meagher & Flom LLP, Systemax, No. 21 in the Internet Retailer Top 500 Guide, was the winning bidder to acquire the assets of CircuitCity.com and certain undisclosed customer information related to the web and other intellectual property.

Systemax, which already operates TigerDirect.com and CompUSA.com, put in a $6.5 million stalking horse bid to acquire CircuitCity.com last month. A stalking horse bid occurs when an interested buyer is chosen by a bankrupt company as the preferred acquirer of its assets; the bid closes the door on very low bids for the assets up for sale.

Systemax isn’t talking publicly about its bid or its immediate plans for CircuitCity.com, but a judge for the U.S. Bankruptcy Court for the Eastern District of Virginia is expected to hold a final hearing to review and close any related issues.

One issue still to be decided is approving the final details to protect the privacy and security of consumer records that will be included in the sale of Circuit City’s web assets. An independent ombudsman hired by the court has recommended a final sale. “The ombudsman recommends that the court approve the sale of the consumer records to Systemax, the bidder selected at the auction on May 11,” according to Circuit City’s latest court papers.