Richmond, Va. Circuit City Stores announced Monday that effective immediately Philip J. Schoonover had agreed to resign from the positions of chairman, president and chief executive. Schoonover, 48, also resigned from the company’s board of directors.
James A. Marcum, 49, who joined the Circuit City board in June, has been appointed acting president and CEO. Marcum brings more than 20 years experience in retail management, including senior executive roles leading turnarounds at Ultimate Electronics and Hollywood Entertainment. He also held senior management positions at Stage Stores and Melville Corp. Currently he also serves as a director of the Iconix Brand Group.
Allen B. King, 62, who has served on the Circuit City board of directors since 2003, has been elected chairman of the board.
In the company’s prepared statement King said, “The board of directors is committed to accelerating the pace of the company's turnaround. Since he joined the board in June, Jim has been very effective in partnering with senior management and in helping identify opportunities to deliver increased value for our shareholders, customers, vendors and associates over the long term."
Circuit City has continued to experience declining sales. In the first quarter of this fiscal year, which ended May 31, net sales decreased 7.4% to $2.30 billion from $2.49 billion in the same period last year, and same-store sales were down 11.3%.
The company plans to announce its second-quarter results on Monday, Sept. 29, and has projected the results may be slightly better than previously projected, although it still expects to report a significant loss.
The ousted Schoonover came to the company in 2004 from Best Buy. He had served as president and a director since 2005 and as chairman of the board and chief executive since 2006.