Circuit City to Sell Private-Label Credit Card Operation to Bank One
RICHMOND, Va., and CHICAGO, Jan 20, 2004 /PRNewswire-FirstCall via COMTEX/ -- Circuit City Stores, Inc.
(NYSE: CC) has agreed to sell its private-label credit card operation, including both its private-label Circuit City credit
card accounts and its co-branded Circuit City Plus Visa credit card accounts, to Bank One Corporation (NYSE: ONE)
for the par value of the receivables, and Circuit City and Bank One will enter into an ongoing arrangement under
which Bank One will offer private-label and co-branded credit cards to both new and existing customers.
As part of the ongoing relationship, Bank One will compensate Circuit City for each new account opened and provide
special financing terms for Circuit City customers. The two companies also plan to jointly develop and introduce new
features, products and services to drive additional sales at Circuit City. At Nov. 30, 2003, the private-label operation
included receivables and related cash reserves of $1.8 billion and approximately 1.5 million active customers.
"This sale further simplifies the investment picture for Circuit City shareholders and allows us to focus our attention on
the needed improvements in our retail business," said W. Alan McCollough, chairman, president and chief executive
officer of Circuit City Stores, Inc. "At the same time, the agreement with Bank One recognizes the strategic
importance of the private- label credit programs to our retail success and the need to ensure a seamless transition for
our customers. Bank One supports our commitment to superior customer service and will support special promotional
financing programs for qualified customers. Equally important, we are pleased that this agreement with Bank One will
provide continued employment for a large number of our finance operation Associates."
"This purchase allows us to add receivables while efficiently acquiring the expertise and operating systems associated
with private-label credit card lending," said Wil