Wattles Ups Circuit City Stake22 Jan, 2008 By: Erik Gruenwedel
Hollywood Video founder Mark Wattles increased his stake in Circuit City Stores Inc. to 11 million shares, or 6.5% of the No. 2 consumer electronics retailer's outstanding stock.
Wattles has dabbled in consumer electronics retail since selling Hollywood Video to Movie Gallery for $1.1 billion in 2005 and disclosed the ownership stake in a Jan. 22 regulatory filing.
Through his Wattles Capital Management investment company (WCM), Wattles also owns a majority stake in, and is CEO of, Ultimate Electronics, a consumer electronics retailer with locations in Arizona, Colorado, Illinois, Kansas, Minnesota, Missouri, Nevada, New Mexico and Oklahoma.
He also reportedly owns shares of bankrupt Tweeter Home Entertainment Group.
The Colorado-based executive maintains ownership of about 20 Hollywood Video locations through license agreements, which Dothan. Ala.-based Gallery has sought to nullify during its ongoing bankruptcy restructuring.
Circuit City December 2007 net sales dropped 8.9% to $1.92 billion, compared to $2.1 billion during the same period last year.