Circuit City Stores, Inc. News
Circuit City And Wattles Capital Management Reach Agreement
As part of the agreement, WCM, which, together with its affiliates, beneficially owns approximately 11,000,000 shares of Circuit City common stock, representing approximately 6.5 percent of Circuit City's outstanding shares, has agreed not to solicit proxies in connection with the 2008 Annual Meeting; to vote its shares in support of all of the board's director nominees at the 2008 Annual Meeting; and to abide by certain confidentiality and standstill provisions through the completion of the 2009 Annual Meeting. At least two of Circuit City's current directors will either step down or decline to stand for reelection at the company's 2009 Annual Meeting of Shareholders.
"We are pleased that this matter has been resolved in a manner that best serves the interests of all Circuit City shareholders," said
"I am confident that the Circuit City board and Goldman Sachs are committed to a process that will maximize shareholder value," said
The complete agreement will be included as an exhibit to the company's Form 8-K to be filed with the Securities and Exchange Commission.
Circuit City, in a separate news release, also today announced that it is exploring strategic alternatives to enhance shareholder value and, as part of that process, will allow Blockbuster Inc. (NYSE: BBI) and its largest shareholder
About Wattles Capital Management, LLC
Wattles Capital Management, LLC ("WCM") makes public and private investments primarily in retail, entertainment and consumer products companies where it sees the potential to increase value through growth or an operating turnaround. WCM was founded and is managed by
About Circuit City Stores, Inc.
Circuit City Stores, Inc. (NYSE: CC) is a leading specialty retailer of consumer electronics and related services. At
This communication may be deemed to be solicitation material in respect of Circuit City's solicitation of proxies in connection with its 2008 Annual Meeting of Shareholders. Circuit City and its directors and executive officers may be deemed to be participants in such solicitation of proxies. Information regarding the special interests of these directors and executive officers in such solicitation of proxies will be included in any proxy statement filed by Circuit City in connection with the 2008 Annual Meeting of Shareholders. In addition, Circuit City files annual, quarterly and special reports, proxy and information statements, and other information with the Securities and Exchange Commission (SEC). These documents are available free of charge at the SEC's Web site at www.sec.gov or from Circuit City at http://investor.circuitcity.com. Investors should read any proxy statement filed in connection with the 2008 Annual Meeting of Shareholders carefully when it becomes available before making any voting or investment decision.
SOURCE Circuit City Stores, Inc.
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