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Circuit City sinks: James A. Marcum to replace Philip J. Schoonover

By Amarendra Bhushan for CEOWORLD Magazine Updated:September 23, 2008

Leadership, conviction, creativity, and principles are sorely lacking in business today. Let’s see what Circuit City can do for an encore!. Circuit City was a mess long before Phil got there. Circuit City Stores Inc., the second-biggest U.S. electronics retailer, said Chief Executive Phil Schoonover will leave after overseeing two years of losses. Schoonover, who joined Circuit City in 2004 from larger rival Best Buy Co., was named CEO in 2006. He cut higher-paid, more experienced staff to reduce costs and opened smaller stores as falling television prices eroded margins, and the company ceded market share to Best Buy, but Schoonover didn’t turn an annual profit.

The board appointed Vice Chairman James Marcum to serve as acting president and chief executive, and elected Allen B King chairman. Marcum, an associate of activist investor Mark Wattles, joined the board in June, a month after the retailer put itself up for sale. Marcum’s elevation means that Circuit City probably won’t find a buyer, said a Sanford C. Bernstein & Co. analyst.

Here’s an excerpt from The Associated Press:

Circuit City has seen only one profitable quarter since the second quarter of 2007. In May, Circuit City announced it hired Goldman Sachs & Co. to explore strategic options, but has never given an official timetable for any action.

That move came as the retailer opened its books to Blockbuster Inc., which had made a takeover bid of more than $1 billion for the company. But in July, the Dallas-based movie-rental chain withdrew its bid because of market conditions. Blockbuster had proposed the deal with plans to create a 9,300-store chain to sell electronic gadgets and rent movies and games.

So, what happens to my extended warranty I bought from Circuit City for my new flat-screen TV if they go out of business?

The only question I have is what took so long?

Who is James A. Marcum?

Mr. James A. Marcum is an Operating Partner at Tri-Artisan Capital Partners, LLC since January 2004. In addition, since April 2007, Mr. Marcum has been a principal shareholder and has served as the Chairman and Chief Strategic Officer of Enabl-u Technologies Corp. He had been an Executive Vice President at Hollywood Entertainment Corp. since May 2001 and the Head of Management of Information Systems, Loss Prevention, Distribution, and Logistics since July 1, 2003. Mr. … Marcum served as the Chief Financial Officer at Hollywood Entertainment Corp., from May 2001 to July 1, 2003 and as an Executive Vice President of Operations. Mr. Marcum was recruited to Hollywood Entertainment by its Founder to lead a recapitalization and improve the company’s profitability. Mr. Marcum most recently served as the Chairman and Chief Executive Officer at Ultimate Electronics, Inc. where he was retained to lead the restructuring and subsequent sale of the Company.

Mr. Marcum served as the Head of Financial Operations and Restructuring Strategy at Ultimate Electronics Inc. since February 2005. Prior to Hollywood Entertainment, from October 2000 to January 2001, he held the position of an Executive Vice President and the Chief Operating Officer at Lids Incorporated. From June 1995 until May 2000, Mr. Marcum worked at Stage Stores, Inc., most recently as the Vice Chairman and Chief Financial Officer. He served as an Executive Vice President and the Chief Financial Officer at Specialty Retailers Inc. since June 1995. Prior to joining Specialty Retailers Inc., Mr. Marcum has served in senior executive capacities at Melville Corporation. While at Melville, he served as the Treasurer of the Melville Corporation from 1986 to 1989, a Vice President and the Controller at Marshalls, Inc. from 1989 to 1990, and most recently as a Senior Vice President and the Chief Financial Officer at Marshalls, Inc. Mr. Marcum served as an Auditor at PricewaterhouseCoopers, LLP. Prior to 1983, he served as an Auditor at Coopers and Lybrand. Mr. Marcum was a private investor. He has been a Director at Iconix Brand Group Inc., formerly Candies Inc. and Millfeld Trading Co Inc., since October 9, 2007. Mr. Marcum also served as a Lead Director at the Bombay Corporation until February 2003. He served as a Director of Ultimate Electronics Inc. Mr. Marcum is a C.P.A.

Bachelor’s Degree 1980
Southern Connecticut State University

2008-Present
Vice Chairman, Member of Audit Committee and Member of Executive Committee
Circuit City Stores Inc.
2007-Present
Director, Member of Audit Committee and Member of Nominating & Governance committee
Iconix Brand Group, Inc.
2007-Present
Chairman of the Board and Chief Strategic Officer
Enabl-u Technologies Corp.
2005-Present
Former Head of Financial Operations and Restructuring Strategy and Director
Ultimate Electronics Inc.

Who is Allen B King?

Chairman of Universal Corporation, a corporation with operations in leaf tobacco, since 2003. Mr. King also served as Chief Executive Officer of Universal Corporation, and Chairman and Chief Executive Officer of Universal Leaf Tobacco Company, Inc., international buyers and processors of leaf tobacco, from 2003 until his retirement on March 31, 2008. Prior to his election as Chief Executive Officer, he was Chief Operating Officer for more than five years. He is a director of Universal Corporation. Mr. King has been a director of the Company since 2003. His present term will expire in 2010. The Company’s Board of Directors has selected Allen B. King as Lead Director of the Board of Directors.

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