What is god’s name is going on at The Journal? I just finished reading an “interview” with Circuit City’s (CC) CEO Philip Schoonover that was, sad. It reads like it was a press release from the company.
Let’s just put aside Schoonover’s destruction of 80% of the companies value in under two years. First things first, here is the “interview”.
This could only have been a “email me the questions and I will send you answers”. There was no follow-up. It was a series of questions with wholly accepted answers. They actually went as far as to print this:
Now, am I the only one who notices that when Schoonover took over the company’s stock price was at a near decade high? The year prior to Schoonover taking over the company made 31 cents a share and this year losses ought to exceed $2 a share. How is he engineering a turnaround?
Why is he even being spoken to about this subject? Can anyone anywhere show me any evidence of ANY turnaround?
Even in his “5 Tips” above, current actions totally contradict them.
Was Schoonover “listening to employees” (Rule #1) when he fired thousands of high priced but experience ones? The very employees it should be noted they are begging to return due to the precipitous drop in customer satisfaction in the stores?
Circuit City recently approved cash retention bonuses for current executives when it became apparent the current bonus plan was worthless due to the plummet in the stock price. Maybe that would have to perfect time to “refresh management” (Tip #2) and save shareholders several million dollars?
Rule #3, “Embrace Your Heritage” seems more than a little bit the polar opposite of the new “The City” concept being rolled out currently which is simply a reinvention of Radioshack’s (RSH) wheel.
Rule #4, “Protect the Future” actually made me chuckle because at the rate Schoonover is going, the only thing in the company’s “future” is a Chapter 11 filing. The guy does make me laugh.
I will give Schoonover credit for following Rule #5, “Stay the course”. I have seen no evidence that Circuit City has any chance rebounding from its current downward spiral.
Disclosure (“none” means no position): Pity for shareholders (those who are left)
