Circuit City needs buyer by next week

RICHMOND, Va., Jan. 10 (UPI) -- A bankruptcy judge has cleared Circuit City to sell its assets to a potential buyer, which it needs to do by next week or go out of business, officials said.

A company spokesman warned Friday that if a buyer isn't found for the bankrupt electronics retailing chain based in Richmond, Va., by the end of next week, it would permanently shut the doors of its remaining stores, The Washington Post reported Saturday.

U.S. Bankruptcy Court Judge Kevin Huennekens in Richmond has approved Circuit City's plan to pay its creditors by selling its assets or by holding an auction set for Tuesday. But Circuit City spokesman Bill Cimino told the Post that if no buyer is found by Friday -- which is the court's and creditors' deadline for reaching a deal -- "then we would move to sell the inventory down and the company would be going out of business."

Analysts said Circuit City, which closed 155 stores in the final months of 2008 following its November Chapter 11 bankruptcy protection filing, could be the first casualty of one of the worst holiday shopping season on record, the Post reported.