Circuit City Cancels Lease Auction

Law360, New York (December 18, 2008, 12:00 AM EST) -- Circuit City Stores Inc. has scrapped plans to auction off a group of unexpired leases, a move landlords had claimed would unfairly release the bankrupt electronics retailer from the full extent of its liabilities.

On Wednesday, counsel for Circuit City posted a notice of cancellation for the Dec. 18 auction despite receiving approval from the U.S. Bankruptcy Court for the Eastern District of Virginia to hold the proceedings a week earlier.

“There was no interest in the leases,” said Douglas Foley, the chairman of the restructuring...
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