Wattles Again Calls For Circuit City Coup
A group of dissidents led by activist Circuit City investor Mark J. Wattles has again called for the company’s CEO, Philip Schoonover, to be replaced, in a formal letter than was delivered to the company’s board Thursday.
“Despite the Company’s unsuccessful ‘turnaround’ efforts under Philip Schoonover,” the letter states, “we strongly believe there is the potential to unlock hundreds of millions of value in the near term and billions of value in the long term for Circuit City stockholders.”
The letter went on to chide the company for its massive layoffs last year. “While we applaud any management team that is focused on making its business more efficient,” the letter states, “Mr. Schoonover and his senior management team appear to have focused on cost-cutting measures with very little or no consideration for their negative impact on revenue and gross profit.”