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Circuit City Online to Continue

April 15, 2009 | Author: Ibex Marketing

Systemax — the company behind Tiger Direct — bought the Web site and a couple of the CompUSA stores in Florida when that company closed last year. Now Systemax is in line to take over the Circuit City Web domain and some other assets, which would increase the company’s dominant position as an online consumer electronics retailer. The deal calls for Systemax to pay $6.5 million, plus a percentage of sales made through the online site over the next two and a half years. The deal won’t be complete until a final auction of the remaining Circuit City corporate assets is completed on May 13.

In related news, the New York consumer electronics retailer P.C. Richard is slated to buy five of the Circuit City store properties in the New York metropolitan region: three in New Jersey, one in Queens, NY, and one in Norwalk CT.

So the consolidation of the consumer electronics market continues, both online and in the bricks and mortar arena. While the recession has been difficult for many companies, these actions demonstrate that it can also provide opportunities for growth for those companies that have the cash to take advantage of low-priced bargains.