Circut City CEO Pressured to Leave
So the pressure mounted and got unbearable. Finally bowing to pressure from activist shareholders, Philip Schoonover stepped down as Circuit City chief executive officer on Monday, Sept 22. Schoonover is being replaced by James Marcum, who will be acting president and CEO.
Marcum was elected to Circuit City’s board of directors in June, after being nominated by activist investor Mark Wattles, who controls a 6.5% stake in the beleaguered electronics store chain. Marcum has some experience in retail turnarounds, having worked at Ultimate Electronics, a retailer specializing in home and auto electronics. In a statement, Marcum said: “We believe that by fine-tuning our focus and strategies we will be able to leverage this history and build a stronger future for the company.”
While Schoonover’s resignation might be considered a victory for Wattles, it is still unclear as to what fate awaits Circuit City. After all, Wattles has said in the past that he wants the company sold as soon as possible. And in May Circuit City had said that it had hired Goldman Sachs to explore strategic alternatives. Someons head has to roll with such poor performance.
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