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CC (Circuit City) news after hours

Circuit City Stores Inc. (CC) named John T. Harlow, a retail-industry veteran, as chief operating officer, in an effort to spur a turnaround at the struggling consumer-electronics retailer.

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. Before joining Deloitte, Harlow was senior vice president, operations for the A&P U.S. division of Great Atlantic & Pacific Tea Co. (GAP), where he helped lead a restructuring that boosted profitability, Circuit City said. Harlow also is a former corporate vice president, administration for Toys "R" Us Inc.

The appointment comes as Circuit City grapples with a combination of economic challenges, competition and a falling stock price. In December, shares plummeted to a 16-year low after the company said increased financing for its turnaround was in the works. The stock closed Wednesday at $3.74, about 83% off its 52-week high of $22.02 reached last Feb. 9. The 52-week low is $3.57, set Tuesday.

Chairman and Chief Executive Philip J. Schoonover said: "John's valuable retail experience and specific insights into Circuit City's business will enable him to act effectively to generate improved performance at Circuit City." He added: "John's extensive knowledge and management skills make him uniquely suited to advance our turnaround and financial performance."

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 and represented the second quarter in a row that changes tied to the turnaround effort appeared to disrupt sales more than help them.

Wednesday, the retailer also said its executive vice president, multi-channel sales, George D. "Danny" Clark, was leaving. The chain said its direct channel, including Web site and call-center operations, will now be directed by Brian S. Bradley, who was recently named senior vice president, multi-channel.

The merchandising team will be led by John J. Kelly, senior vice president, merchandising, Circuit City said. Kelly, named chief merchandising officer in November, joined the company in May 2005 as senior vice president, general merchandise manager.

The supply chain and inventory team will be led by Kelly E. Breitenbecher, senior vice president, supply chain and space planning. Breitenbecher joined the company in February 2005 as vice president, supply chain. In November 2006, Breitenbecher was appointed vice president, inventory, floor and space planning, inventory operations.

Schoonover said: "The changes we are making today bring proven turnaround experience to the retail team and enable us to continue to move forward with our turnaround of the core business and accelerate our growth initiatives."

On Jan. 8, Schoonover expressed concerns about the company's outlook, expecting the slowing U.S. economy to weigh on sales at Circuit City stores for at least the first half of the year. The CEO's gloomy comments came after an 11.4% decline in the company's December same-store sales.

Consumers are pulling back sharply on frills like big-screen TVs now that the holiday gift-buying season is over and the U.S. economy continues to slow with no discernible uptick in sight.

Earlier this month, Goldman Sachs said it expected Circuit City to struggle at least through 2009. For 2008, Goldman almost doubled its projected loss for Circuit City, to $1.50 from 77 cents a share.

As of Dec. 31, Circuit City operated 671 superstores and 13 other locations in 158 U.S. markets. The international segment operated 788 retail stores and dealer outlets in Canada.

In recent after-hours trading, Circuit City shares were at $3.75 versus Wednesday's close of $3.74.