We just read a Business Week story that ponders whether or not Circuit City is puttingitself up for sale. The retailer is getting pressure from investorMark Wattles, who owns a 6.5% stake in the company, and otherinvestors, to make changes. And there are rumors, the article says,that Circuit City's management has hired Goldman Sachs to look atstrategic alternatives.Though Circuit City posted a $4.9-millionfourth-quarter profit, management predicts a loss of between $180million and $195 million in the current quarter. Q4 same-storesales fell 10.4%, and for the coming year, they are expected todecline in the mid-single digits.Despite this, thecompany is sticking to its store-opening pace, and management sees a future in its smaller"City"-branded stores.WouldWattles, who founded Hollywood Entertainment and heads Ultimate Electronics, end up as a suitable buyer? IsCircuit City likely to get picked up by a rival? Or are there nobuyers out there right now for an electronics retailer havingissues?

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.