We just read a Business Week story that ponders whether or not Circuit City is putting itself up for sale. The retailer is getting pressure from investor Mark Wattles, who owns a 6.5% stake in the company, and other investors, to make changes. And there are rumors, the article says, that Circuit City's management has hired Goldman Sachs to look at strategic alternatives.Though Circuit City posted a $4.9-million fourth-quarter profit, management predicts a loss of between $180 million and $195 million in the current quarter. Q4 same-store sales fell 10.4%, and for the coming year, they are expected to decline in the mid-single digits.Despite this, the company is sticking to its store-opening pace, and management sees a future in its smaller "City"-branded stores.Would Wattles, who founded Hollywood Entertainment and heads Ultimate Electronics, end up as a suitable buyer? Is Circuit City likely to get picked up by a rival? Or are there no buyers out there right now for an electronics retailer having issues?
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