Circuit City's CEO needs to go

When Blockbuster Inc. (NYSE: BBI) announced at the start of this week that it would offer over $1 billion for struggling consumer electronics retailer Circuit City Stores, Inc. (NYSE: CC), there were probably quite a few people who were left scratching their heads. Why would two companies in a downward spiral want to combine? Well, to try and save both companies if possible. Other theories have been put forth ad nauseum, but if the takeover does go through, the first order of business should be to toss platitude-spouting Circuit City CEO Phil Schoonover.

Lured from larger competitor Best Buy, Inc. (NYSE: BBY) back in 2004, Schoonover's experience with the largest consumer electronics retailer in the U.S. was seen as helping Circuit City. It hasn't worked out, though: Circuit City has not gained a single inch against Best Buy and it has slowly traveled the road to mediocre and now deplorable performance. Why most of Circuit City's management team exists is beyond me, even with Schoonover trumpeting the "turnarounds" and "we have plans in place" phrases he doles out at every quarterly conference call.

It's too bad -- Circuit City could have been a formidable competitor to Best Buy, but was outmaneuvered at every possible turn by a more nimble (but much larger) competitor. Wattles Capital Management, which at one time was rumored to be looking at a takeover of Circuit City, has wanted the current Circuit City board tossed out for quite some time. Mark Wattles, the owner of Wattles Capital Management, said in a letter to the company's board, "We are confident that the right senior management team with the right strategy and focus would be able to immediately and dramatically improve Circuit City's profitability." Regardless of where Circuit City is headed, one thing is certain: Schoonover and his cronies should dust off their resumes -- not that they are very impressive.