Sunday, January 13, 2008

We're Number Two

From worse to worser; the continuing saga of one of the world's stupidest retailers. Bloomberg (01.08.08):
"Circuit City Stores Inc., the second- largest U.S. consumer-electronics chain, said December sales dropped 8.9 percent and repeated a forecast for a loss in the fourth quarter after holiday discounts failed to attract shoppers."

Circuit City Sales Fall 8.9%; Loss Forecast Repeated

How well have they been doing? "'You name it, they are having a problem with it,' said Anthony Chukumba, an analyst at FTN Midwest Securities Corp. in New York. 'The quality of their merchandising, their inventory management and their customer service in particular.'"

Which doesn't leave a whole lot, does it.

Some are not pleased. AP (01.11.08):

"A major shareholder of Circuit City Stores Inc. has sold nearly its entire stake in the nation's No. 2 electronics retailer, which reported earlier in the week that sales in December had fallen.

The TCW Group Inc., which was formerly the company's largest institutional investor, slashed its holdings to 310,045 shares, which represents a 0.2 percent stake in the company, according to a Securities and Exchange Commission filing Thursday.

Major Circuit City holder cuts stake

"That's down from a 10.9 percent stake, or 18.3 million shares, TCW reported owning in August."

"TCW declined to comment further on its sales of shares in the Richmond company."

Believe it or not, Circuit City also declined to comment, except to say they are now using both hands in their continued search for their ass, which some might say has already been handed to them.

Don't cry for the CEO though; he's doing rather well: "Circuit City chief executive Philip J. Schoonover received a salary of $716,346, along with a $704,700 bonus last year. He also has long-term compensation of $3 million in stock awards and $340,000 in underlying options, according to company filings."

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