Circuit City Stores, Inc. announced today that Bell Canada has agreed to acquire the Canadian operations of Circuit City. InterTAN Canada Ltd., a subsidiary of Circuit City, controls these operations and operates more than 750 The Source stores across Canada.
The acquisition is subject to court approval in both the United States and Canada and customary closing procedures. The purchase price will not be disclosed until further court order.
James A. Marcum, vice chairman and acting president and chief executive officer of Circuit City Stores, Inc., said, “The acquisition of our Canadian operations by Bell Canada follows an active sales process that saw considerable interest in this business. This is a positive outcome for Circuit City, InterTAN and its employees, suppliers and customers. I would like to acknowledge the hard work, dedication and professionalism exhibited by both the InterTAN team in Canada and the Circuit City team in the United States over what has been a challenging period.”
Circuit City acquired InterTAN Canada in May 2004. InterTAN is the subject of a court-monitored sales process following the company’s entry into creditor protection in Canada in November 2008. The sale is being managed by Rothschild and is expected to close in the third calendar quarter of 2009.
About Circuit City Stores, Inc.
Circuit City Stores, Inc. (Pink Sheets: CCTYQ) conducted business as a specialty retailer of consumer electronics and related services. On November 10, 2008, Circuit City and each of its wholly-owned United States and Puerto Rican subsidiaries filed voluntary petitions for reorganization relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Virginia. In addition, on November 10, 2008, InterTAN Canada Ltd., the Company’s Canadian operating subsidiary, received creditor protection from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (Canada).
At December 31, 2008, the domestic segment operated 567 stores in 153 U.S. media markets and 45 states. At December 31, 2008, the international segment operated through more than 750 retail stores and dealer outlets in Canada. On January 16, 2009, Circuit City began the liquidation of the assets of the Company and its subsidiaries as part of the Chapter 11 proceedings.