Wattles: Circuit City Suitor to Surface Shortly24 Jun, 2008 By: Erik Gruenwedel
Fiscally challenged consumer electronics retailer Circuit City Stores Inc. has attracted multiple offers, and a possible suitor could emerge in less than four weeks, dissident shareholder Mark Wattles told Reuters.
Blockbuster Inc. remains the only publicly disclosed acquisition party following a $1.3 billion bid last month. The rental company remains in due diligence and cannot disclose further details about the status of its offer, according to CEO Jim Keyes.
The Richmond, Va.-based retailer, which held its annual shareholder meeting June 24, has struggled to reach profitability for more than a year.
Wattles, who cofounded, headed and then sold Hollywood Entertainment Corp. to Movie Gallery, owns a 6.5% stake in Circuit City through his investment company, Wattles Capital Management LLC. He has increasingly used his stake in the company to voice objection to its direction and management.
The investor's company this month gained seats to the Circuit City board following a meeting between CEO Phil Schoonover and Wattles.
“I am very confident that we will be seeing who the buyer of Circuit City is in the next three or four weeks and what the price is,” Wattles told Reuters.