Auction on Circuit City leases called off

Circuit City Stores Inc. has not received any bids on leases for 154 stores it began closing last month and has canceled a planned auction for tomorrow, according to a posting on its bankruptcy Web site.

Circuit City announced Nov. 3 that it was conducting going-out-of-business sales at the 155 stores in 55 markets by Dec. 31. Three of the stores are in Virginia. None are in the Richmond area.

The Henrico County-based retailer received permission from a federal bankruptcy judge Dec. 5 to auction all but one of the leases after the closing sales were finished.

The leases cost the company about $6 million per month, according to court papers.

Gordon Brothers Group LLC and Hilco Merchant Resources LLC, the companies hired to liquidate the 154 stores, now pay the rents at those locations. But that will stop once the stores close. Circuit City then will be responsible for lease payments.

Circuit City filed for bankruptcy protection Nov. 10. The retailer's next bankruptcy court date is Dec. 22.

-- Louis Llovio