Investor calls for new Circuit City directors
Advertisement
Text size: small | medium | large
Joe Macenka
Richmond Times-Dispatch
Published: February 29, 2008
Disgruntled investor Mark Wattles today stepped up his attack on Circuit City Stores Inc., calling for a new board of directors for the Henrico County-based electronics chain.
Wattles, who owns 6.5 percent of the chain, submitted a proposal that each board member besides the five nominated by the firm should be removed, according to a statement distributed this morning.
Wattles, through his Wattles Capital Management LLC, said earlier this week that Philip J. Schoonover, Circuit City’s chief executive officer, should be replaced.
Wattles, the founder of Hollywood Entertainment Corp., is mounting the most public challenge to Circuit City and its CEO, who has overseen a $3 billion drop in stock market value since taking over in 2006.
Circuit City has reported a net loss for five straight quarters and is losing customers to Schoonover’s former employer, Best Buy Co.
Wattles has said he disagrees with Circuit City’s contention that the losses are the result of a slumping economy and poorly placed stores. Schoonover has asked investors for patience while he cuts costs by firing higher-paid store employees, and makes changes to store design, staffing and managers.
Wattles also wants to repeal bylaws or amendments the board might adopt without seeking shareholder approval.
Post a Comment
The commenting period has ended or commenting has been deactivated for this article.
Can't find what you're looking for? Try our quick search:
