AOL Money & Finance

Who on earth would want to buy Circuit City?

More

Circuit City Stores Inc. (OTC: CCTYQ) continues to negotiate with potential buyers who the company says want to continue operating the second-largest electronics retailer. I will believe it when I see it.

The retailer has gotten its butt kicked by Best Buy Co. (NYSE: BBY) for years. Its penny-pinching ways has resulted in lousy service because the company was too cheap to pay experienced sales help. Moreover, this is a bad time to sell electronic gadgets and gizmos that are the very definition of discretionary spending. Retail sales have dropped for six straight months.

Anyone hoping a white knight will rescue Circuit City, which has more than $2.3 billion in liabilities, is going to be surely disappointed. The bankruptcy spooked real estate companies with mall holdings that rent to Circuit City and other chains.

Whatever interest there is in the chain is likely from liquidators and real estate investors. Even these buyers are going to drive a hard bargain because of the distressing number of chains in the same situation such as Linen's 'n Things and KB Toys Inc.

Reader Comments (Page 1 of 1)

Symbol Lookup
IndexesChangePrice
DJIA+203.5210,226.94
NASDAQ+41.622,154.06
S&P 500+23.781,093.08

Last updated: November 10, 2009: 07:39 AM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

WalletPop Headlines