The clock is ticking for electronics seller Circuit City. The company, which has been operating under bankruptcy-law protection since November, is facing a January 16 deadline to reach a sale agreement or be forced to liquidate, and at least two parties are apparently interested in either buying the troubled retailer or providing additional financing to allow it to continue with its restructuring process.
According to people familiar with the matter, one of the prospective suitors is Mexican billionaire and electronics-chain executive Ricardo B. Salinas Pliego, who bought a 28.1% stake in Circuit City in November and said to be exploring a possible purchase. The identity of the second party has not been revealed.
Circuit City has already liquidated and closed 155 stores in the U.S. over the last two months, and hopes to begin an auction process for the company on January 13 – but the costs required to revitalize the poorly-run business probably won’t add up favorably amid the current economic uncertainty.