Circuit City, the US consumer electronics retailer, on Friday underlined the decline in its fortunes by putting itself up for a possible sale, the day after its larger rival Best Buy announced an ambitious $2bn expansion into Europe.

The retailer said it would now open its books to Blockbuster, the video rental chain, after previously shunning an approach that has the backing of Carl Icahn, the billionaire investor who is Blockbuster’s largest shareholder.