Circuit City’s board of directors forced out CEO Philip J. Schoonover yesterday in response to the retailer’s declining sales and market share over the two years in which Schoonover has held this post. Schoonover joined the country’s second-largest electronics chain in 2004 and eventually became president, chairman, and chief executive of the company. He will step down from all three positions.
Schoonover, a former Best Buy senior executive, was brought in to revitalize Circuit City’s fading business, but was ultimately unable to suppress the market slump that has hit most retailers. The company had entertained an unsolicited bid from Blockbuster in July, but the deal fell through after the video rental company reconsidered the attractiveness of the bid. Circuit City is currently seeking bids.
In their press release, Circuit City gave reserved praise to Schoonover while also looking to the future: “Phil has made many significant contributions during his tenure, including expanding our multi- channel capabilities, enhancing our services offering and developing the firedog(SM) brand. We thank him for his leadership and we wish him well with his future endeavors.”
Schoonover’s formerly-held three positions will be divided amongst two. James A. Marcum, appointed vice chairman last month, will serve as acting president and CEO, while Allen B. King, a former Circuit City director, will be made chairman of the board.
Circuit City’s share price opened this morning at $1.79. Blockbuster’s initial offer in July had been for $1 billion, or between $6 and $8 a share.