Anyone remember the famous Monty Python skit? See it below:
Circuit City (CC) is the old guy being carried by John Cleese.
Last week brought the overdue firing of CEO Phil Schoonover, also said it would suspend store openings beginning with its 2010 fiscal year to focus on turning around its operations.
Circuit City has reported losses for five of the past six quarters, and sales have dropped for more than a year. Q2 net loss was $239.2 million, or $1.45 a share, compared with a loss of $62.8 million, or 38 cents a share, a year earlier. Total sales fell almost 10% to $2.39 billion and same-store sales, fell 13.3%.
A year ago, in a post commenting on then-rumors that Sears Holdings' (NASDAQ:SHLD) Eddie Lampert might make a bid for the company, I said, "Lampert, based on his past history, would more likely wait for these buffoons to run it into bankruptcy and pick it up for a fraction of today's price".
I doubt Lampert wants it, but if he does, bankruptcy is right around the corner..
Disclosure ("none" means no position): Long SHLD,None