Circuit questions linger after Blockbuster exit
FROM TWICE: Chain still seeking 'strategic alternatives'
By Alan Wolf of TWICE -- Video Business, 7/2/2008
JULY 2 | FROM TWICE: Blockbuster’s attempt to buy Circuit City ended quietly Tuesday night with the movie-rental chain pulling the plug on the deal.But the main issue facing Circuit City with Blockbuster out of the running is the question of what the future holds for the CE chain, given its own financial challenges and a decidedly difficult retail environment
Even though activist Circuit City investor Mark Wattles won the battle to add three hand-picked members to the chain’s board, Circuit City’s management was never really a fan of this deal.
Last month, after the board was expanded, Wattles said the field of interested buyers also included two unnamed private equity firms and that a deal was to be announced shortly, according to a Richmond Times-Dispatch report.
As of this posting, there was no word on who those two private equity firms are and when a decision, if any, would be reached
In its prepared statement last night, Circuit City reiterated its intention to look at other “strategic alternatives” to enhance shareholder value, calling it “an active and ongoing process.”
Read the full story on TWICE.com.
