Circuit City responds to investor concerns

RICHMOND, Va. Circuit City Stores has responded to the letter sent to its directors that called for the ousting of chairman and ceo Philip Schoonover. The company replied to the letter from investor Mark Wattles of Wattles Capital Management, indicating that its board would agree to meet with him to discuss his concerns about Circuit City.

Circuit City said that it did not feel Wattles had a clear understanding of the company's strategy and challenges. The company also said that it had reached out to Wattles to discuss his firm's concerns.

The company also called out Wattles for not allowing its proposed director nominees to meet with its nominating and governance committee of its board of directors without imposing an unusual and unreasonable condition for such a meeting. Circuit City added that they should be able to review the nominees as they would gain control of the board if Wattles proposal to remove the entire Circuit City board went through.