We are confident that, with the right senior management team, the right strategy and the right focus, Circuit City can overcome its operational problems and turnaround its struggling business. WCM's primary goal is to help restore investor faith in Circuit City and unlock the Company's significant unrealized value by pushing for the following immediatechanges:-- Replace the current Chairman and CEO with a seasoned executive capableof restoring credibility with employees, vendors and stockholders;-- Focus on the "customer experience" and strategies for making thecurrent stores more productive;-- Begin addressing the actual issues facing the Company and drive revenuegrowth, rather than focusing on cost-cutting strategies and "spin"campaigns.-- Focus on the most immediate and least capital-intensive opportunitiesto improve the health of the business; and-- Develop and articulate a deliverable promise for the new "The City"brand that works within the realities of the current store footprints.
While Wattles' pressure is unlikely to result in getting Schoonover's head in the near-term, the current CEO's timeframe for success appears to be shrinking. Continue to keep a close eye on how Circuit City responds to Wattles' pressure and the firm's shrinking profits and options for turning the company around.
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