Rumors of Circuit City sale circulate
- April 9, 2008
BusinessWeek is reporting that Richmond-based Circuit City Stores may have hired Goldman Sachs to explore the possibility of selling the company.
The beleaguered electronics retailer has struggled against competition from Best Buy and discount retailers such as Wal-Mart and Target. Investor Mark Wattles, who has bought about 6.5 percent of the company’s shares, has called for a major change in strategy.
Still, the retailer posted better results in the fourth quarter than either the company or Wall Street expected. Circuit City reported a $4.9 million profit, up from a $4.3 million profit during the fourth quarter of 2006. Both company officials and analysts had predicted a small loss.
The company says the profit is due mostly to cost-cutting measures.