Circuit City goes on the auction block at noon today.
Potential buyers will bid on the consumer electronics company as a whole, per store or on individual assets.
The auction, being carried out in the Manhattan offices of Circuit City Stores Inc.'s attorneys, is scheduled to finish tomorrow.
According to an order filed yesterday by U.S. Bankruptcy Judge Kevin Huennekens, when the auction is completed the company must post the results on the retailer's bankruptcy Web site, www.kccllc.net/circuitcity.
On Friday, the chain will seek the judge's approval for a deal or deals, or to get ongoing financing, if necessary, according to a court order.
In yesterday's court order, Huennekens also allowed the Henrico County-based chain to enter into a "stalking horse agreement," which basically sets a price floor, so the bidding could not fall below that amount.
If the company fails to find a buyer or secure additional financing, it could be forced to liquidate, the retailer said.
Circuit City has been losing money for nearly two years and struggled through the recent holiday shopping season. It filed for bankruptcy Nov. 10 after announcing it was closing 155 stores and cutting about 700 jobs at its headquarters.
At a hearing late last month, an attorney for the chain, Gregg M. Galardi, said sales since it filed for bankruptcy protection were down as much as 50 percent from the previous year.
The chain is expected to announce its fiscal third-quarter earnings this week.
Shares of Circuit City closed yesterday at 33 cents, up 2 cents from Friday.
Contact Louis Llovio at (804) 649-6348 or LLLovio@timesdispatch.com.
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