November 10, 2008 / 8:07 PM / 11 years ago

TIMELINE: Key dates for Circuit City in 2006-2008

(Reuters) - Circuit City Stores filed for Chapter 11 bankruptcy on Monday, citing tougher credit terms from vendors and market share losses to rivals such as Best Buy Co and Wal-Mart Stores Inc.

Here are some key dates in the company’s history:


December 19: Circuit City reports a surprise fiscal third-quarter loss after it cut prices on hot electronics like flat-panel TVs and computers to lure customers during the holiday shopping season. The No. 2 consumer electronics chain also cuts its outlook for the full fiscal year. Shares drop 17 percent.


January 5: Circuit City says December same-store sales rise 4.2 percent as consumers snap up flat-panel TVs during the holiday shopping season; raises full-year sales forecast.

February 8: Circuit City says it is closing about 70 international stores, mostly in Canada, and that Douglas Moore, its chief merchandising officer, has left the company. The company says it expects to close 7 U.S. superstores by the end of February.

February 23: Circuit City says Chief Financial Officer Michael Foss will leave the company in April to become finance chief at Petco Animal Supplies Inc.

March 28: Company says it has hired Goldman Sachs to explore strategic options for a possible sale of InterTan Inc, a Canadian retailer it bought in 2004. Says it will replace 3,400 U.S. store employees with lower-paid workers.

April 4: Circuit City posts a fiscal fourth-quarter loss on store closures and restructuring costs and says it will speed up cost-cutting.

November 6: Circuit City announces that David Mathews, merchandising and marketing executive vice president, is leaving the company for Orchard Brands, a holding company owned by private equity firm Golden Gate Capital.

November 21: Circuit City asks former employees, including some staffers replaced by lower-paid workers earlier in the year, to apply for new jobs.

December 19: Circuit City approves cash awards designed to retain upper-level executives.

December 21: Circuit City reports a bigger-than-expected fiscal third-quarter loss and forecasts a loss for the quarter that includes the holiday shopping season, which is typically its most profitable quarter. Shares drop 29 percent.


January 7: The retailer says December sales at stores open at least 12 months fell 11.4 percent as changes at U.S. stores disrupted business.

January 16: Circuit City names John Harlow chief operating officer and says he will supervise retail stores, real estate and information technology. The post had been vacant since 2005.

January 22: Entertainment industry investor Mark Wattles indicates in a filing that his firm has acquired 6.5 percent stake in Circuit City

February 9: Circuit City Chief Executive Philip Schoonover tells Reuters at company headquarters that Circuit City it is not looking to sell itself, says it has capital to finance a “multi-quarter turnaround.”

February 25: Wattles-led Wattles Capital Management, which owns 6.5 percent of Circuit City stock, announces it has nominated five people to the Circuit City’s board.

April 9: Circuit City reports a small and unexpected fiscal fourth-quarter profit as costs fall in the wake of store closings. It forecasts a wider first-quarter loss due to the “toughest macroeconomic environment in years” but says it sees a gradual recovery in the second half of fiscal 2009.

April 14: Blockbuster Inc discloses that it offered to buy Circuit City for up to $1.3 billion, a bid that draws questions and criticism from Wall Street. Circuit City declines due diligence, citing concerns about financing of the bid.

May 9: Circuit City, reversing course, agrees to open its books to Blockbuster, says it is exploring strategic options and has settled proxy fight with investor Wattles

June 19: Circuit City posts a wider fiscal first-quarter loss on falling sales; suspends its dividend to save cash.

July 1: Blockbuster abandons bid to buy Circuit City, saying a deal is not in the movie rental company’s best interest amid current market conditions.

August 19: Circuit City says it appointed director James Marcum to the role of vice chairman. CEO Schoonover calls Marcum a “highly experienced retail turnaround executive.”

September 22: Circuit City announces that Schoonover agreed to step down as chairman, president and chief executive; Marcum named acting president and CEO.

September 29: Circuit City reports a wider fiscal second-quarter loss, withdraws its financial outlook and says store closures could be part of a turnaround plan. Shares drop 21 percent.

October 30: Circuit City receives notice from New York Stock Exchange that it does not comply with listing standards since its closing stock price has been less than $1.00 over 30 consecutive trading days.

November 3: Circuit City announces plan to liquidate and close 155 of its U.S. stores.

November 7: Richmond-Times Dispatch, a local newspaper, reports that Circuit City has let go up to 800 workers at company headquarters in Richmond. The company declines to comment.

November 10: Circuit City files for Chapter 11 bankruptcy protection, shares delisted from NYSE.

Reporting by Karen Jacobs and Atlanta and Lisa Baertlein in Los Angeles; editing by John Wallace

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