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www.EmploymentCrossing.com Philip Schoonover has stepped down as CEO of Richmond, Virginia-based consumer electronics retailer Circuit City after four more...years, two of which showed losses. Pressure from activist shareholders led the retailer to replace Schoonover with vice chairman James Marcum. Marcum was elected to Circuit City's board of directors in June, after being nominated by activist investor Mark Wattles, who controls a 6.5% stake in the beleaguered electronics store chain. Marcum has some experience in retail turnarounds, having worked at Ultimate Electronics, a retailer specializing in home and auto electronics. While Schoonover's resignation might be considered a victory for Wattles, the future of the retail chain, with 683 stores in the US and Puerto Rico, is unclear. A $1 billion acquisition proposed by Texan DVD rental chain Blockbuster failed this summer as the economy weakened. Circuit City management initially resisted the bid, but later relented. It doesn't appear that any serious buyers have emerged since then. Circuit City shares now down 80% from a year ago. The chain never recovered from a price war that erupted two years ago over flat-panel TVs, when prices plummeted 40% to 50%. less
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Sep 23, 08
By: itcrossing
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