Circuit City just gives up on one of its biggest outstanding claims
The legal process of liquidating all of Circuit City's assets and trying to pay off as much of its debt as possible is still ongoing, but the lawyers involved may be getting a little tired.
In a bid to get back some cash, Circuit City went after audio equipment manufacturer Onkyo for nearly $10 million. The defunct electronics chain claimed that although it paid Onkyo $9.6 million for numerous products, because the items were never sold through at retail they were still legally owned by Onkyo. Circuit City's order for this merchandise also came just a couple weeks before it filed for bankruptcy so the retailer was looking for legal loopholes that would erase the $9.6 million in unsold merchandise from its records.
Onkyo fought back, though, and the bankruptcy court showed no mercy to the retailer. Japanese business news site Nikkei reported that Circuit City "settled" the case, but in reality they simply dropped the case altogether.
At its initial filing for bankruptcy last year, Circuit City cited a total of $2.3 billion in debt but claimed it had enough money in non-liquid assets to cover that. It is still in the process of liquidating those assets.