Anonymous asked in Business & FinanceCorporations · 1 decade ago

What happened to Radio Shack (Circut city)?

I heared they went bankrupt :S

Any other companies closing down?

Because i heard radio shack is closing now in the states and its closing down in canada after the holidays

1 Answer

  • 1 decade ago
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    Circuit City drops ‘disastrous’ CEO

    Circuit City (CC) is making an overdue change at the top. The struggling Richmond, Va., consumer electronics retailer said Monday it hired James Marcum as its CEO, replacing Philip Schoonover. Marcum joined Circuit City’s board earlier this year as part of a deal with dissident shareholder Mark Wattles, who took a big stake in the company earlier this year in an effort to force a sale of Circuit City. So far, obviously, that hasn’t happened, and for now Marcum makes no promises other than to try harder.

    “Circuit City has a long history of being a leader in the consumer electronics industry,” said Marcum. “It is my mission to direct that energy towards improving our operations and strengthening our market position in order to accelerate our turnaround and deliver improved results for all of our key stakeholders.”

    Delivering improved results shouldn’t be hard, given how far Circuit City has fallen. The company said Monday afternoon, for instance, that it expects to “deliver second quarter results that are slightly better than the previously provided range.” But before you get your hopes up, consider that the forecast the company now expects to beat called for a “loss from continuing operations before income taxes of $170 million to $185 million, excluding any unusual/non-cash charges.”

    Circuit City shares, at a recent $1.70, have lost two-thirds of their value since Wattles agreed in May to settle his differences with the company, and more than 90% of their value since Schoonover - who oversaw what Wattles called a “disastrous” cost-cutting effort - took over as CEO in March 2006. But look at the bright side, says Chairman Allen King. “The board of directors is committed to accelerating the pace of the company’s turnaround,” he says. Or, at the very least, turning it in the right direction.

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