While parent company Circuit City Stores Inc. has announced the liquidation of its last 567 U.S. stores following its failure to find new financing or a buyer after filing for bankruptcy protection, in Canada the future of 765 The Source by Circuit City stores remains murky.
The Canadian stores are operated by InterTAN Canada, a subsidiary of Circuit City while filed for creditor protection in Canada at the same time as its U.S.-parent. Potential buyers for the Canadian operation were asked to present formal proposals to an Ontario court on Friday, and while that happened, the identity of any potential suitors still remains speculative.
In a statement, InterTAN Canada spokesperson David Ryan said the company has received a number of formal proposals regarding the sale of its Canadian operations as a going concern, but the number and identity of the bidders remains confidential.
“InterTAN is now evaluating each of the proposals but has not set a timeline to complete this process. Confirmation of a winning bidder is subject to court approval,” said Ryan. “In the meantime, all of The Source by Circuit City stores across Canada remain open for business.”
Media speculation has identified companies such as The Brick and Best Buy Canada as potential suitors for The Source by Circuit City. Best Buy recently launched Best Buy Mobile, a small-box mobile device sales store, at several Toronto-area mall locations, and The Source by Circuit City would provide ready-made locations for a national expansion of that brand. With The Brick, the potential retail concept is less clear.
