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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.