Last week I wrote that Circuit City is in deep trouble and today, BusinessWeek wrote up a news story claiming the retailer may have hired Goldman Sachs to help it find a company that's willing to take this dog and turn it around. And while I'm not sure it will have such good luck doing it, it's about time Circuit City executives wake up and realize that something needs to be done.
In case you haven't been following the Circuit City saga, the company's stock price has lost nearly 75 percent of its value in the past 12 months and although it was hovering at around $19 per share a year ago, it's now languishing at about $4.50 per share.
But what's more important than the financial crisis at the company is its inability to compete on too many levels with Wal-Mart and Best Buy. Most notably, Circuit City is simply unable to compete at the executive level.
Let's be honest -- any company that has lost 75 percent of its stock value, has attempted a resurgence plan that failed miserably and is being pressured by major shareholders to oust its executives is nothing more than a poorly run enterprise. And as any shareholder of the company knows, the best way to solve that problem is to get rid of the anchors and find some new management that may actually know how to run a company.… Read more