Nov. 3 2008
Circuit City Stores inc. is getting rid of 20% of the stores in the U.S in effort to make more money. In addition to taking away 155 of the 700 stores, Circuit City is planning on laying off 17% of the domestic work force. This change will be heading to be moved into the holiday season, where Circuit City they will do good in selling the electronics. Vice chairman James A Marcum said that "the decision to close stores is difficult but necessary".
Within the last year, Circuit City has had only one profitable quarter and its sales have dropped 13%. Even though Circuit City has been seeing a lot of down times. The company has been working hard to change that and make things better by exploring strategic alternatives. They have been working with advisers to determine how to improve the operating and financial performance. Along with the problems with the stores, Circuit City has been dealing with issues from the New York Stock Exchange. The NYSE warned that its stock price was not high enough for continued listing.
Since September Circuit City has been under new leadership, when Chief Executive Phillip Schoonover stepped down. James Marcum has replaced him, and is going to try and turn around this company.
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