Circuit City Reports 2Q Loss

Richmond, Va. Circuit City Stores Inc. reported a loss of $239.2 million in its second quarter ended Aug. 31, compared with a loss of $62.8 million in the same quarter last year.

Sales declined 10% to $2.39 billion from $2.64 billion. Consolidated same-store sales declined 13.3%.

"Clearly, the performance of the company is unacceptable to all of our stakeholders, and it is imperative that we take the right steps to accelerate our turnaround," James A. Marcum, vice chairman and acting president and CEO said in a statement.

Circuit City also announced it is undertaking a comprehensive review of the business and has identified key initiatives for the holiday season, including a focus on enhancing shopping experience, improving inventory on key items, and upgrading signage.

The company on Monday also said that while strategic options will always be explored, it is "prudent to focus internally on improving the company's performance in order to operate as a standalone business."

In May, Circuit City announced it hired Goldman Sachs & Co. to explore strategic options, but has never given an official timetable for any action.