USA: Largest shareholder currently investigating increasing stake in ailing consumer electronics retailer

Circuit City receives interest from shareholder

Circuit City is reportedly in discussions with two "highly motivated and interested parties", who are interested in keeping the ailing US consumer electronics retailer afloat according to Reuters.

The retailer, which is currently operating under Chapter 11 bankruptcy protection, is reported to be in talks with Mexican tycoon Ricardo Salinas Pliego. Pliego currently holds a 28 per cent stake in the firm, making him the largest shareholder in the firm, according to a spokesperson for the Mexican.

This speculation led the retailer to make a statement on its website. "The parties have substantially completed due diligence and now are in negotiations with the company and the company’s major stakeholders to finalise such a transaction.

"While the company is optimistic that a transaction can be successfully finalised, no assurance can be given that this will occur," the statement continued.

The retailer had been forced to close 155 of its stores in November, as reported by PC Retail.

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