Circuit City: Former Hollywood Entertainment Exec Takes 6.5% Stake, Talked To Management, Mulls Options
Circuit City (CC) shares jumped today after investor Mark Wattles, a former CEO of Hollywood Entertainment, filed a 13-D disclosing a 6.5% stake in the company. Wattles Capital Management also owns a majority interest in Ultimate Acquisition Partners, which owns 32 consumer electronics stores under the name Ultimate Electronics.
In the filing, Wattles discloses that prior to acquiring his shares, he met with Circuit City management. Wattles says that in the future he could take such actions as nominating one or more board members or seeking the sale of the company.
Circuit City shares today are up 75 cents, or 20%, at $4.51.
Who would want to buy this company with all it’s people morale problems.
Why would John T. Harlow who was involved in Toys R Us worst years, want him and any company that he is COO of.
b) On January 16, 2008, Circuit City Stores, Inc. (the “Company”) and George D. Clark, Jr., executive vice president, multi-channel sales, terminated their employment relationship, effective as of February 29, 2008.
(c) On January 16, 2008, the Company appointed John T. Harlow as Executive Vice President and Chief Operating Officer, effective as of January 21, 2008.
Prior to his employment with the Company, Mr. Harlow, 49, was a consultant with Deloitte Consulting LLP, which included work with the Company, since February 2007, and he had been a consultant in private practice from March 2006 to February 2007. From December 2003 to March 2006, he was senior vice president
- operations for the A&P U.S. division of The Great Atlantic & Pacific Tea Company, Inc., a retail supermarket company. From June 2001 to December 2003, he was corporate vice-president - administration for Toys “R” Us, Inc., a retailer of toys and baby products. Additional information with respect to Mr. Harlow is included in a press release dated January 16, 2008, a copy of which is attached to this Report as Exhibit 99.1.
OK…
Now What?
Hollywood Video is thinning out locations.
While Circuit City is being run by people that don’t understand the business!
Putting a milk cooler in the back of the stores and adding a geraff for a mascot is not a turn around!!
Where have all the “Heart & Soul” electronic retailers gone?
Circuit City was once run by the industry’s finest management team.
If Wattles wants to maximize his investment.. he needs to fill the Operating Jobs with Big Ticket Retail Pros!!
I have known Phil Schoonover for over 20 years and I have watched him grow in the consumer electronics industry. Phil has the soul of a merchant and if he ever stops kissing Wall Street’s ass and starts running CC like he knows he should, everyone who gets in under $5 will double their investment in the next year. CC can beat BB. They need to get into more furniture and change their compensation program for the frontline retailers that truly are the heart and soul of the company. Expect spiffs and commissions to revitalize the entire CC sales force and run circles around the dormant BB staff.
Re: P.J. Schoonover:
I have also known this guy for at least 12 years. I never worked for him. I know that a good skipper with a rotten crew can sink the boat. I am not referring to anyone outside of upper management.
Tech Trader Daily is a blog on technology investing written from Palo Alto, California by long-time Barron's West Coast Editor Eric J. Savitz. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields.
