Circuit City On Thin Ice

Circuit City’s stock has been going down hill a little over two years now faces having to close many of its stores or bankruptcy.

In April 2007, when Circuit City’s stock was at almost $20 per share, the AP attributed Circuit City’s struggles to “Customer Service.”

Earlier this year in April, Blockbuster offered to buy out Circuit City for $1 billion or $6 to $8 a share. Big mistake in hindsight when the stock is trading today at $0.30.

In June 2006, Philip J. Schoonover joined Circuit City as Chairman of the Board of Circuit City Stores, Inc., single-handedly bringing down the company stock by 99% – over the past 108 weeks, resigning September, 22, 2008.

What’s really ironic is that Schoonover had come from Best Buy Stores, Inc., leaving as the Executive Vice President of Customer Segments.

Although Best Buy will benefit from this, they better learn from Circuit City’s lack of customer service and avoid at all costs incidents like this one, where a customer after buying an article online and going to the store to pick it up, was faced with what can only be viewed an poor customer service and now a PR nightmare for Best Buy.