Circuit City under pressure to sell
- April 29, 2008
Electronics retailer Circuit City Stores Inc.’s largest shareholder is asking the company to put itself up for sale.
HBK Investments LP, which also owns about 8.5 percent of Blockbuster’s holdings, urged Richmond-based Circuit City to allow Blockbuster to look at its financials in a letter on Monday.
Circuit City’s board of directors previously has refused Blockbuster’s request, saying it wants the rental-movie chain first to prove it can afford the estimated $1.3 billion purchase.
The store has also received pressure to consider Blockbuster’s offer from investor Mark J. Wattles. On Monday, he filed a slate of nominees for five seats on Circuit City’s board with the Securities and Exchange Commission. Wattles, who owns about 6.5 percent of the company’s stock, has also asked for Circuit City to allow Blockbuster to review its financial records.