time_for_real_solutions

Circuit City: Outlook Is Grimmer Than Ever

CC's real problem is that it has no identity. They are a big store...so what...they have a decent selection of electronics...yawn....... the employees are demotivated. If they want to turn this company around they would have to start by getting rid of management. To make that happen they would likely have to get rid of the board. I think BBI did hte right hting here. Instead of buying the whole company you can wait and purchase the pieces you really want out of bankruptcy!

The real question right now is how long it will take the board to realize they can not support this management team? Too many boards get to close to management and allow themselves to be blinded to what is happening. My guess is that they are not adequately informed about the business and that is their fault for not demanding more information. I have to believe though that eventually the desire to protect their own backsides will kick in and they wil do the right thing. Will it be too late?