The fate of The Source by Circuit City hangs in the balance as tomorrow’s deadline looms for buyers to firm up bids for the chain of 765 consumer electronics stores.
The best outlook for the profitable chain, hobbled by its U.S. parent’s problems, is a sale that would leave The Source outlets intact and protect all 3,130 jobs across Canada.
Possible suitors include furniture retailer The Brick Income Fund, retail rival Best Buy Canada, or a buyout group led by The Source management.
The unfortunate alternative for The Source could be to follow its U.S. parent into liquidation. Circuit City Stores Inc., the second largest U.S. consumer electronics retailer, began closing its doors last Friday.
In the process, it dragged its Canadian subsidiary into bankruptcy court protection because the two shared the same credit facility.