Blockbuster backs out of Circuit City
July 3, 2008
Blockbuster has withdrawn its offer to buy US electronics retailer Circuit City, citing difficult market conditions. Blockbuster said the bid, which valued the retailer at more than $1 billion was no longer in its best interests.
Last month, Circuit City said its sales had fallen by 11 per cent in the three months to the end of May. Blockbuster had planned to create a chain selling portable devices as well as entertainment to be played on them.
Despite withdrawing its offer, the firm’s chief executive said it still believed in that strategy. “We will pursue this strategy through our Blockbuster stores as a way to diversify the business and better serve the entertainment retail segment,” said Blockbuster.