Management Turnover as Change Agent

Tuesday, February 26, 2008

CEO Watch - Philip J. Schoonover, Circuit City, Update 1

Circuit City CC (NYSE) the troubled electronics retailer has come under increased pressure again for a change at the top. Activist retail investor, Mark J. Wattles of Wattles Capital Management has said he's seeking to replace Circuit City's CEO Phil Schoonover. Wattles owns over 6% of the company's stock. According to a Bloomberg story in the Houston Chronicle Wattles,
...sent an e-mail requesting a meeting with Schoonover to discuss strategy at the retailer. He said he was rebuffed and referred to investor relations.

Wattles, the founder of Hollywood Entertainment Corp., has mounted the most public challenge to Schoonover.
According to a press release from Circuit City the company,
confirmed receipt of notice from shareholder Wattles Capital Management, LLC that it intends to nominate five directors for election to Circuit City's 12-member board of directors at the company's 2008 Annual Meeting of Shareholders. In accordance with Circuit City's bylaws, unless the board selects another date, the meeting will be held on June 24, 2008
It is difficult to believe that over time Wattles will not prevail in his attempt to make major management changes at the firm. The real question is whether it is too late. Stay tuned.

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A Thorough Connect said...

Great post! I am trying to find the exact date of Schoonover's hire for the position of CEO at Circuit City. Do you happen to know it or know where I can easily find it. Thanks, let me know.