The Wall Street Journal-20080117-Circuit City Hires Operating Chief- Harlow Brought In To Help Halt Losses- Falling Stock Price
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Circuit City Hires Operating Chief; Harlow Brought In To Help Halt Losses, Falling Stock Price
Circuit City Stores Inc. named John T. Harlow, a retail-industry veteran, chief operating officer in an effort to spur a turnaround at the consumer-electronics retailer.
Mr. Harlow, 49 years old, most recently was a retail director with Deloitte Consulting LLP and has been involved with Circuit City over the past year. He will oversee Circuit City's retail stores, real estate, information technology and supply chain. The operating chief's office had been vacant since 2005.
Before joining Deloitte, Mr. Harlow was senior vice president, operations for the A&P U.S. division of Great Atlantic & Pacific Tea Co., where he helped lead a restructuring. Mr. Harlow also is a former corporate vice president for Toys "R" Us Inc.
The appointment comes as Circuit City, of Richmond, Va., grapples with a combination of economic challenges, competition and a falling stock price. In December, the shares plummeted after the company said increased financing for its turnaround was in the works. On Tuesday, the stock hit a 52-week intraday low of $3.57. In 4 p.m. composite trading yesterday on the New York Stock Exchange, the shares were up 14 cents, or 3.9%, to $3.74.
Despite cuts to labor and a recasting of store procedures in an effort to stem losses, Circuit City has seen the red ink continue and the departure of three senior-level executives in the past year -- including its merchandising executive three weeks before Black Friday. The Richmond, Va., company's loss for the fiscal third quarter ended Nov. 30 was more than four times as steep as Wall Street expected .
Yesterday, the retailer also said its executive vice president, multichannel sales, George D. "Danny" Clark, was leaving. Mr. Harlow will take over many of Mr. Clark's duties. Mr. Clark, 48, declined to comment.
The chain said its direct channel, including its Web-site and call- center operations, will now be directed by Brian S. Bradley.
