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Schoonover Welcomes Sit-Down With Wattles

Richmond, Va. — Circuit City CEO Phil Schoonover has formally responded directly to activist investor Mark Wattles’ request for a sit-down.

In a letter dated March 28 and filed today with the U.S. Securities and Exchange Commission (SEC), Schoonover said he welcomed the opportunity to meet with Wattles after the company releases its fourth-quarter and full-year results this Wednesday, or sooner if the Ultimate Electronics principal prefers.

Schoonover said he had also contacted Wattles in February via email but had not received a response.

Wattles is seeking to oust Schoonover and replace Circuit City’s board and had said he decided to nominate his own slate of directors in February after attempts to meet with the chain’s senior executives were rebuffed.

Schoonover also indicated in the March 28 letter that the company had yet to receive a response to its month-old request to meet with Wattles’ board nominees. Wattles responded on April 2 that he would only agree to the meeting if Circuit’s directors unconditionally backed his nominees. Circuit City’s lead director Mikael Salovarra, who also offered to meet with Wattles, called the terms “unusual and unreasonable” in a letter dated April 4.

Circuit City will hold its annual shareholders meeting on June 24.