Circuit City Will Open Door To Suitor Blockbuster

Circuit City Stores Inc. effectively put itself up for sale Friday after months of rebuffing a potential buyout offer from Blockbuster Inc., saying it would allow the video-rental chain and Blockbuster's largest shareholder, Carl Icahn, to review its books.

While a deal is far from assured, the Richmond, Va., consumer-electronics retailer relented after Mr. Icahn sent a letter to the company saying he would be willing to buy the company outright if Blockbuster couldn't fund a purchase or secure necessary shareholder approval. The electronics retailer said it had hired Goldman Sachs Group Inc. to help it explore strategic alternatives.

Circuit ...