FINANCE

Movie Gallery Could Emerge From Bankruptcy by Q2

BY CSA STAFF

Dothan, AL

Movie Gallery Inc. said it could emerge from bankruptcy in the second quarter under a reorganization plan it filed last week, the company said Monday.

The second-biggest video rental chain after Blockbuster filed for bankruptcy protection in the U.S. Bankruptcy Court in the Eastern District of Virginia earlier this fall. The company’s leading creditor, Sopris Capital Advisors LLC, endorses the reorganization plan filed on Dec. 22.

The agreement would cancel existing shares of Movie Gallery’s common stock, giving significant equity to Sopris.

Once traded at more than $33 a share on NASDAQ, Movie Gallery was subsequently delisted and trades for about 7 cents per share on the Pink Sheets.

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Circuit City quarterly loss widens

BY CSA STAFF

RICHMOND, Va. Circuit City’s financial troubles continue, as the company today reported a wider net loss and a sales decrease for the third quarter.

The company reported that net loss from continuing operations for the quarter totaled $208 million, or $1.26 per share, compared to a net loss of $19.9 million, or 12 cents per share, for the third quarter of fiscal 2007.

For the third quarter, the company reported that net sales decreased 3.1% to $2.96 billion from $3.06 billion in the same period last year, with consolidated comparable-store sales decreasing 5.6%. Comparable-store sales increased 5.2% for the third quarter 2006.

“We are very dissatisfied with our third quarter results,” said Philip Schoonover, chairman, president and ceo of Circuit City Stores. “We underestimated the financial impact from the disruption of our transformation work, which contributed to lower close rates, reduced attachments of higher margin accessories and firedog services and lower extended warranty net sales as compared with the prior year. As a result, we are reporting lower sales and higher net losses in the quarter than last year’s third quarter.

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Best Buy names human capital evp

BY CSA STAFF

MINNEAPOLIS Best Buy Thursday announced that John Pershing has been named evp of human capital for the corporation.

Pershing will be in charge of recruiting, training, employee relations and employee development for about 140,000 employees at Best Buys operations around the world. The companys legal department also will report to him. He will report to Brad Anderson, Best Buys vice chairman and ceo. His appointment was effective Dec. 11.

John is an engaging and energetic leader who brings a valued combination of field experience and human resources experience to his new role, said Anderson. He is a champion of the unique culture that we have built at Best Buy. John understands how the ecosystems in which our employees work must be continually adapted so that we create relevant experiences for our customers and build great relationships with them. 

Pershing joined Best Buy in 1989 as a retail manager and steadily advanced to positions of increasing responsibility. In 1999, Pershing was named divisional manager, responsible for loss prevention. He was promoted to vp of retail operations for Musicland, a former Best Buy company, in 2002. In 2005, Pershing took on a new assignment as vp of organizational alignment and the corporate transformation efforts necessary to roll out the companys customer-centric business strategy.

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