Circuit City Dismissing Employees, Directors
By Alan Wolf -- TWICE, 3/17/2009
Richmond, Va. – Circuit City will proceed with plans to terminate most of its remaining employees this month, and will cut the number of board directors from 11 to five as part of the company’s wind-down process.
Among those departing are three Circuit City officers: John Harlow, executive VP/chief operating officer; Reginald Hedgebeth, senior VP/general counsel and secretary; and Eric Jonas, Jr., senior VP human resources. The executives’ employment at Circuit City will end this Saturday, March 21, according to a filing with the Securities and Exchange Commission.
James Marcum, vice chairman and acting president/CEO, will stay on for an indeterminate period, along with VP/controller Michelle Mosier, to manage the liquidation of assets owned by Circuit City and its subsidiaries.
All employees had been notified on Jan. 16 of the pending terminations, with target dates of between March 21 and April 4.
In addition, the company has discharged seven directors including Carolyn Byrd, James Hardymon, Lyle Heidemann, J. Patrick Spainhour, Ronald Turner, Elliott Wahle and Carolyn Woo. Each resigned effective March 11, and all were in agreement on the company’s actions, the filing indicated.
Wahle was one of three directors added to the board last June to avoid a proxy fight with activist investor Mark Wattles. His other hand-picked directors, Marcum and Don Kornstein, will remain on the five-seat board.
Separately, Circuit City reported net sales of $682.7 million for the full month of January and net earnings of $382.5 million.
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$4 million in bonus money??? Did i read that the bankruptcy judge approves the wind down incentive bonuses for the officers sinking the ship, while the crew rowing the oars who dedicated years of faithful service can not even recover unpaid PTO that is considered income and that was earned...so many of the crew stayed on while the ship was taking on water to close 700+ stores well ahead of schedule...Mr. Banruptcy judge... do the stand up thing and allow circuit city to pay us what we rightly earned according to the benefits package. Its in writing!
KramBZ - 2009-19-3 12:30:00 EDT -
And how much of that "Wind Down Bonus" money are they taking with them? If AIG can get away with it, I guess Circuit City can also. Nothing like corporate america stabbing its own employee''s in the back.
sj - 2009-18-3 16:44:00 EDT
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