Wattles buys stake in Circuit City

PHILADELPHIA Mark Wattles, manager of Wattles Capital Management, has acquired a 6.5% stake in Circuit City Stores, according to an SEC filing.

According to the filing, Wattles and his affiliated companies owned 11 million shares of the company as of Jan. 22.

WCM indirectly owns a majority interest in Ultimate Acquisition Partners, a Delaware limited partnership, which owns 32 consumer electronics retail stores under the name Ultimate Electronics.  Wattles also serves as ceo of UAP, and is the founder of Hollywood Entertainment.

Shares of Circuit City were $4.55 at market close, but fell to $4.34 by 9 a.m., EST.