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 Investor Mark Wattles' Wattles Capital Management LLC has amassed a 6.5% stake in struggling Circuit City Stores Inc., and is now agitating for change with the nomination of five directors to the electronics retailer's board. The investment is the second big position Wattles has taken in an electronics retailer; he's the largest shareholder of Ultimate Electronics Inc. Interestingly, he amassed his holdings in Ultimate shortly before its 2005 Chapter 11 bankruptcy filing and bought half its stores at a bankruptcy auction.
Prior to his career as an activist investor, Wattles was best known as the founder of Hollywood Entertainment Corp., which he sold to Movie Gallery Inc. for $1.2 billion in 2005. Good timing. The combined company is now in bankruptcy. Interestingly, BloggingBuyouts wrote:
Maybe BloggingBuyouts was being facetious. Wattles' track record seems mixed at best. Additional coverage will come later in The Daily Deal and on TheDeal.com. - Matthew Wurtzel See Feb. 27 Schedule 13D filing for board nominations from SEC Edgar CategoriesComments
From: Matthew Wurtzel
 ,
Chris,
Posted on:
March 11, 2008 3:09 PM
From: Circuit City Employee 4583 2342,
I blame the corporate owners...Best buy's killing Circuit City right now because they are offering deals lower and lower...circuit city just matches prices- people aren't impressed with circuit city's prices at all...HELLO!! Where is the marketing?!?! It's like they want circuit city to do poor...Its a shame that they were #1 in the 90's...now they're number 3 I believe- which is absolutely pitiful...Blockbuster's going to buy them out potentially too which is a horrible choice but I'm sure it will happen. I work in a Circuit City now...daily revenue just isn't cutting it...Theres alot of demand for more sales and there just isn't enough people interested in buying products. They all just want to look or compare with other stores...I really place the blame on the owners. Sacrifice a few million dollars out of the 12 billion you get a year and initiate new customer-friendly policies. They're only hurting themselves. Whenever someone from corporate is visiting the store- its very tense and uncomfortable. All the blame's placed on us and we can't do anything about it because the policies they make us perform to get customers to buy items and services- end up scaring customers away. For example- A laptop about 800-900 dollars is an easy sale but then on top of that we have to add firedog services and a warranty...Now that can add another 300-400, hell even 500 dollars sometimes on top of that total for the laptop...It scares customers away. Circuit City depends on firedog for 50% of its revenue and thats what makes it sad...Circuit city was doing fine in the 90s without firedog, now they can't survive without it...The whole company has horrible management...wrong people in power. The employees (who all understand whats really going) have no say or input at all...It's a corporate owned store so we have to follow corporates ridiculous rules. I can only hope my store doesn't get shut down in the next few months...
Posted on:
May 10, 2008 2:11 AM
From: Adam ,
I worked at Best Buy for 10 years. CC was the leader in the Electronics but then has been over taken not only by Best Buy but Wal-Mart, Target and other stores that sell the same items at lower prices. I dont think Firedog is killing the company as they needed something to combat Best Buy with it's Geek Squad services. CC was just a few years late getting into that part of the business. Yeah they offer Firedog services and warranties but do does BBY. You dont "NEED" to get them as they are JUST services. To say CC was doing just fine in the 90's isnt correct. In this field of business you need to stay on top of the others not just be fine. BBY has made dramatic changes which has kept them on top, where I dont think CC has done that. When your saying your just fine one year the next is when your not the leader because of not changing.
Posted on:
December 8, 2008 9:28 PM
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How do I get in touch with Mark Wattles. I am an ex- technology manager with CC fired for selling 5 cellphones to 1 customer. I know how to turn CC stores around! I did it. My management team turned a bottom of 11 stores to #1 through the 03 Holiday season... that store was closed just months after I left because it failed to perform! Get me in touch with Mr. Wattles please.