Richmond, Va. Circuit City Stores Inc. said Friday it is in talks with two parties that could buy the company or provide additional financing for it to stay in business.
Circuit City filed for Chapter 11 bankruptcy protection in November as it faced pressure from vendors, heightened competition and waning consumer spending. Its Canadian operations filed for similar protection.
U.S. Bankruptcy Judge Kevin Huennekens gave Circuit City permission to begin the process of selling the company's units or its assets. Circuit City had filed a motion under seal on Monday and an expedited hearing was held Friday.
Circuit City said Friday the "highly motivated and interested parties" it is talking with, which it did not name, are considering providing additional financing to allow the company to sustain operations and restructure.
The parties have substantially completed due diligence, the company said.