Richmond, Va. Circuit City Stores Inc. said Tuesday it has agreed to sell its 756 Canadian stores to Bell Canada Enterprises Inc. as the liquidating chain spins off its last valuable pieces before going out of business.
Circuit City didn't disclose the sale price, which will require approval from judges in the United States and Canada.
Buyer Bell Canada will double its current number of corporate-owned or licensed stores to 1,450.
"It's a bold move, buying something in these times," said Amit Kaminer, an analyst at the Seaboard Group. "This is taking a damsel in distress and saving the day, and on the way increasing [Bell's] distribution and real estate space."
Bell Canada president and CEO George Cope said the deal helps the company "accelerate" its presence in the wireless, TV, Internet and home-phone business.
It's also consistent with Cope's promise to investors and analysts to make Bell more aggressive and competitive after last year's $52 billion deal to privatize parent BCE Inc. fell through.