Wattles says three firms looking at Circuit City

RICHMOND, Va. One of the largest shareholders for Circuit City said three companies are now looking at a possible purchase of the chain and that a decision should be made within a month.

Wattles made the announcement following Circuit City’s annual meeting on June 24. He told a reporter for the Associated Press that “the sniffing is over” and that all three companies are nearing the completion of their due diligence. He declined to identify the companies.

Circuit City executives did not comment on the report from Wattles, whose investment firm owns a 6.5% share of the chain. To date, Blockbuster is the only company that’s made its pursuit of Circuit City public and has offered an estimated $1.3 billion for the company.  

That deal has come into question since last week though, after Circuit City reported a $164.8 million loss of its quarter ended May 31.

At the annual meeting, Circuit City ceo Philip Schoonover did not provide an update on Blockbuster’s pursuit of a merger and said there’s no timeline for action on the deal. He also said the chain is in “a good industry despite headwinds in the economy.”