The $12.5 billion No. American superstore Circuit City has hired Goldman Sachs to explore "strategic alternatives" for the struggling chain. The move comes after pressure from shareholders led by industry veteran Mark Wattles to oust the board of directors and CEO Philip Schoonover. Schoonover is accused of making a bad situation worse by his idea to cut costs last year by laying off 3400 of Circuit City’s highest-paid-and most experienced-employees. Wattles, whose company owns a 6.5% stake in Circuit City, founded Hollywood Video in the 1980s, built it into the #2 rental chain in USA and sold it in 2005. Then he took over Ultimate Electronics and turned the 32-store chain around. His demands create options that may put him in charge. Go Circuit City Responds to Wattles
Circuit City Between Rock and Hard Place
The $12.5 billion No. American superstore Circuit City has hired Goldman Sachs to explore "strategic alternatives" for the struggling chain. The move comes after pressure from shareholders led by industry veteran Mark Wattles to oust the board of directors and CEO Philip Schoonover. Schoonover is accused of making a bad situation worse by his idea to cut costs last year by laying off 3400 of Circuit City’s highest-paid-and most experienced-employees. Wattles, whose company owns a 6.5% stake in Circuit City, founded Hollywood Video in the 1980s, built it into the #2 rental chain in USA and sold it in 2005. Then he took over Ultimate Electronics and turned the 32-store chain around. His demands create options that may put him in charge. Go Circuit City Responds to Wattles
