Check Out Circuit City posting its fifth quarterly loss for the past six quarters and withdrawing its financial outlook, as declining store traffic put a damper on sales right before the key holiday season.
Circuit City, which competes with Best Buy, has been the subject of takeover speculation and other questions about its future as results weaken, hurt by consumers dialing back on nonessential spending amid high food and gas prices and tight credit markets.
Earlier in the year, Circuit City received a takeover offer from movie-rental company Blockbuster, but that was later withdrawn after the movie-rental company decided taking on the troubled retailer wasn’t in its best interests. No other company has since expressed interest.
Last week, Chief Executive Philip Schoonover left, taking with him his full $900,000 base salary, another $900,000 target bonus for the current fiscal year, health care for two years and automatic vesting of his stock options.
The company now says it is closely reviewing its business and will take steps to shore up its performance during the critical holiday shopping season.
Also in the basket:
Walgreen posts higher quarterly profit (Reuters)
Pilgrim’s gets temporary waiver on convenant (Reuters)
Wal-Mart Japan unit to close 20 stores, cut staff (Reuters)
(Photo/Reuters)
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So Schoonover, who helped finish the wrecking of once proud and industry leader circuit city got a
“Last week, Chief Executive Philip Schoonover left, taking with him his full $900,000 base salary, another $900,000 target bonus for the current fiscal year, health care for two years and automatic vesting of his stock options.”
No wonder our nation’s economics, under the republican regime of Bush, and his would be successor, McCain/Palin, is crashing, possible into the next great republican depression.
Why didn’t the board do to Scootover what it did to thousands of their hard working employees during his tenure. Hand him a check for about $1000-@4000 in termination pay, and show him the door.
And if his lawyer complains, offer to sue him for malfeasance in office.
- Posted by SteveMD2