Wednesday, November 12, 2008

Maybe SysteMax Will Buy Circuit City

With Circuit City going the way of CompUsa, a potential exists for the remaining Circuit City assets to be snatched up by SysteMax, parent company of TigerDirect. With Circuit City closing out the majority or all of their stores, the remaining assets such as it's brand, website, and inventory, might look like an attractive purchase for companies looking to break into consumer electronics market.

I would think for a company like SysteMax, the Circuit City database of customers and the brand itself would be a very attractive aquisition. The Circuit City brand is very well established, and to be honest, has a deeper market penetration with regards to general consumer electronics then any of the other SysteMax brands. Most of the SysteMax brands are focused on the geeks, who regularly build their own computers.

In either case, Circuit City's main competitor Best Buy is sure to be happy that it will finally be dominant in it's market. Circuit City claims that it will continue to operate, however, I wouldn't be buying an extended warranty from them anytime soon, lol.

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