Circuit City Loses Weedfald and Pappas6 Mar, 2008 By: Chris Tribbey
Circuit City confirmed to several media outlets March 6 that two executives, chief marketing officer Peter Weedfald and small stores president Steven Pappas, are no longer with the company.
The news comes amidst worse-than-expected third-quarter financial losses for the retailer, and anticipated losses for the fourth quarter of 2007.
“It's not surprising for a company of our size, especially in the midst of a period of transformation, to have changes within its management,” Circuit City spokesman Jim Babb told The Associated Press. “We are making and will continue to make the organization decisions that we feel will best further our turnaround, our strategies and shareholder value.”
Circuit City announced in December it had lost more than $207 million in the third quarter of 2007, compared to a little more than $20 million during the same period in 2006. In February the retailer received a boost from lenders, who upped the company's credit line from $500 million to $1.3 billion through Jan. 31, 2013.
After an exodus of several key executives, Circuit City said late last year that it was offering its upper management incentives to stay, with EVPs given a reported $1 million if they stayed through 2011, and SVPs receiving $600,000 under the same terms.
The Associated Press reported that neither Weedfald nor Pappas were eligible for the bonuses.