The City Revival Plan: Circuit City Analysis and Restructuring
“The City Revival Plan” Circuit City Analysis and Restructuring December 14, 2007 Columbia Business School Turnaround Management Professor Laura Resnikoff Chester Han, Andrew Huml, Anand Kagalkar, Lena Saito, Kristy Sundjaja December 14, 2007 Circuit City Stores, Inc. Board of Directors 9950 Mayland Drive Richmond, Virginia Dear Members of the Board: We have completed our analysis of Circuit City Stores, Inc (“Circuit City”). The objective of our work was to document a detailed study of Circuit City’s industry, market share, financial structure, and market valuation, then define a comprehensive turnaround plan for sustained and profitable growth. As you have requested, we have not met with Management in the execution of our work. Therefore, we have made certain assumptions that we have stated throughout. In addition, with any turnaround plan, we expect minor changes to our strategy and approach throughout the plan’s implementation. The accompanying pages of our report include the following sections: • Executive Summary • Industry and Company Background • Our Recommended Turnaround Plan – “The City Revival Plan” This report is intended solely for the information and use of the Board of Directors and is not intended to be and should not be used by anyone other than this specified party. Circuit City’s external auditors and regulators may be provided with a copy of this report in connection with fulfilling their respective responsibilities. Yours truly, Turnaround Management Team Disclaimer: This analysis was developed as part of a graduate program assignment; all information used in connection with this analysis is publicly available in annual reports, company publications, and news media. This is a fictitious letter to the Board and for example purposes only; Circuit City’ Board or Management were not contacted and did not solicit this analysis.
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