Article: Circuit City Stores, Inc. Announces Plan to Split Off Its Carmax Auto Superstore Business.

Richmond, Va. -- Circuit City Stores, Inc. today announced that its board of directors has authorized management to initiate a process that would separate its CarMax auto superstore business from the Circuit City consumer electronics business through a tax-free split-off in which CarMax, Inc., presently a wholly owned subsidiary of Circuit City Stores, Inc., would become a separate publicly traded company.

Circuit City has requested a ruling from the Internal Revenue Service that the separation would be tax-free to Circuit City and to holders of Circuit City Group and CarMax Group stock. In association with the proposed split-off, the board has authorized the ...