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Circuit City Loses Deal For $6.5 Million and Ordered to Sell Brand at Auction.

RICHMOND, April 14, 2009 -- Circuit City's tentative deal to sell its brand, trademarks and web domain for $6.5 million was derailed today when the bankruptcy judge ordered the assets sold at auction.

Circuit City Stores Inc. had a tentative contract called a "stalking horse agreement" to sell its brand, trademarks and web domain for $6.5 million to New York based Systemax Inc. for $6.5 million. A provision of the deal required Systemax to pay Circuit City revenues from sales from the Circuit City domian name for a period of 30 months.

The deal was quashed when the bankruptcy judge handling the Circuit City bankruptcy ordered that these assets be sold at an auction held on May 11, 2009.

Approximately 40 interested parties are expected to bid on the Circuit City brand, trademarks and web domain.

Systemax Inc. was the same company that purchased the intellectual property of toppled electronic store CompUSA when it closed its doors in 2008.