Recession has knocked many well known retail stores from the local landscapes. Years ago we would not expect to hear from these companies again. But with the internet some of these stores have been revived in cyberspace. Circuit City and Linens n’ Things which both had liquidations and closed store across the United States now have reopened online stores. Each company was sold to other companies.
According to a press release by Systemax, Inc.:
On May 19, 2009 Systemax closed on its agreement to acquire certain trademarks, trade names, domains including www.CircuitCity.com, customer lists and information, and other intangible assets of Circuit City’s e-commerce business. The purchase price was $14 million in cash plus a share of future revenue generated utilizing those assets over a 30-month period. Under the terms of the agreement, the minimum future revenue guaranteed to Circuit City is $3 million. The Bankruptcy Court issued its order approving the transaction on May 15, 2009 following a public auction conducted on May 11, 2009.
In North America, Systemax sells consumer electronics online, by direct mail and in retail stores under the TigerDirect and CompUSA brands. Internet Retailer recently named Systemax the 21st largest online retailing company for 2009 and 9th largest in the Computers and Electronics category in their Top 500 Guide for 2009.
Gordon Brother Brand issued another press release:
Hilco Consumer Capital, L.P. (“HCC”) and Gordon Brothers Brands, LLC (“GBB”)……. acquired the intellectual property assets of Linens ‘N Things, a widely recognized and popular home textiles and housewares brand. The acquisition includes the established Linens ‘N Things brand name, its bridal and gift registry businesses, all Internet domains, a number of proprietary brands, including, Luxe Versailles, Attitude, Super Set, Cook at Home and Hotel Living that contributed significantly to the company’s $2.8 billion sales in 2007 from its 25,000 SKU offering.
Both Circuit City and Linen n’ Things are popular brands and that alone gives them a fighting chance in the online retail market. Maybe someday they well venture to get their feet wet again in the brick and mortar retail space again. It gives more hope for our economy. Seeing Linens n’ Things and Circuit city comeback is really encouraging.