Circuit City Stores, Inc. (NYSE: CC – News) has appointed director James A. Marcum as vice chairman of the company. In this new position, Marcum is expected to play a key role in leading the company’s turnaround. He will work with Philip Schoonover, President, CEO, and Chairman. The good news is that Marcum is deemed a turnaround manager. The bad news is that he is still under Schoonover, whom we named and still have as one of the top CEO’s that need to go.
The company said the board continues to pursue strategic alternativesfor the company that offer the best possible results for itsshareholders in the long term. The company keeps talking aboutdelivering value to shareholders, yet we are only one operation amongmany who have shown that the only value created has been a negativevalue. Schoonover needs to recognize that if Marcum is really a greatturnaround expert that Circuit City needs to can Schoonover and putMarcum in that role.
Shares are up 6% at $1.91 in pre-market trading, yet this is a smallvictory as the 52-week trading range is $1.71 to $11.55 and this wasnorth of $20.00 not even 2 years ago. Schoonover’s efforts have donenothing but destroy shareholder value. He deserves muchcongratulations, at least he will the day he finally leaves.
Jon C. Ogg
August 19, 2008
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