Blockbuster’s Potential Turning Point to Occur This Week
Dallas, Avote at this Wednesday’s annual meeting of Blockbuster, Inc. shareholders may mark a turning point in the troubled chain’s internal affairs. The meeting, to be held in Dallas, will include a vote on whether to replace three directors—among them CEO John Antioco—with dissidents led by Blockbuster’s largest shareholder Carl Icahn.
Icahn contends that Blockbuster is bleeding money while Antioco is collecting fat bonuses, a claim that Antioco vehemently has denied.
Even if Icahn’s slate of directors sweeps, he won’t control enough board positions to control the company. However, Antioco has vowed to leave the company if he loses his board seat.
Wild Oats Markets Posts Q1 Loss
Boulder, Colo., Wild Oats Markets suffered a net loss of $1.2 million in the first quarter, partly due to expenses related to a change in lease accounting and the opening of new stores. The company earned $2.1 million in the same quarter last year. Same-store sales declined 0.3% as total sales increased 5% to $278.1 million.
Circuit City Responds to RadioShack Statement
Richmond, Va., Circuit City Inc. today disputed a statement issued by RadioShack, arguing that it has not relinquished its rights to the exclusive use of the RadioShack brand in Canada until 2009. RadioShack’s statement, released yesterday, said that it had won a lawsuit against Circuit City and was creating a subsidiary to oversee its Canadian expansion. Circuit City’s InterTAN unit currently runs RadioShack stores in Canada, but the two retailers are in a legal quarrel over the rights to the name.