Struggling Richmond-based electronics giant Circuit City, headquartered just east of Short Pump off Mayland Drive, had their stock fall to its lowest ever value. Shares in the retailer at press time had fallen to a mere 75 cents. Circuit City lost $239.2 million, or $1.45 a share, in a three month period ending on August 31, 2008, compared to losses totalling $62.8 million, or 38 cents a share, in the same period of 2007.
“We realize the performance of this company is unacceptable to all of our stakeholders and that it is imperative that we take the right steps to accelerate our turnaround,” James A. Marcum, acting President and CEO, said in a conference call. Marcum, who replaced former CEO Phil Schoonover after his resignation last week, says the company is focused on improving customer service and plans to keep large inventories of key items in stock this holiday season to spur sales. A large advertising campaign to promote the company’s brand is also expected.
It remains to be seen just how long Circuit City’s vendors will have faith in the company’s turnaround strategies. This holiday season is expected by some analysts to be dismal in terms of gross sales, and may very well shake the foundations of even the most solid retail foundations. But, will Circuit City even make it to Christmas?
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