Based on the company's performance, the head of Circuit City (NYSE: CC) should have left a year ago. Instead, he left yesterday and it will not help the retailer one little bit.
According to The Wall Street Journal, the company's board forced out Philip J. Schoonover, who served as chairman, president and chief executive officer. He had been around for four years and during that time, earnings had gotten worse. Perhaps that was not his fault.
Circuit City may simply be too small to compete with operations like Best Buy (NYSE: BBY) and Wal-Mart (NYSE: WMT). It does not have their number of stores or their balance sheets to readily add new locations.
Circuit City tried to find a buyer but had no luck. That is hardly Schoonover's fault. No one wants a third-tier electronics retailer that is losing money. The company's shares are at $1.70, down from a 52-week high of $9.65. If Circuit City cannot find at buyer at that price, it is not going to be sold.
CC can put a chimp or the Queen of England into the top job; it will not matter. The company is beyond saving. Call the Chapter 11 lawyers.
Douglas A. McIntyre is an editor at 247wallst.com.