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The Henrico County-based company, which closed the last of its remaining 567 stores March 8 and is in the process of going dark, said in a Securities and Exchange Commission filing that it had cut eight of its 13 board members as well as three of its senior executives.
The executives are set to leave tomorrow. .The board members left March 11.
As the fired executives prepare to leave, another waive of employees will depart today.
Circuit City spokesman Bill Cimino said last night that about 160 employees remained at the company's Mayland Drive headquarters. He was not sure how many would leave today, but said after this exodus, and a second one the middle of next month, there would be fewer than 100 employees left.
As the company continues to wind down its operations, it will keep five directors on the board and will retain two top executives: James A. Marcum, vice chairman, acting president and CEO; and Michelle O. Mosier, vice president and controller.
Marcum and Mosier will stay for an undetermined time, according to the SEC filing. Mosier is the principal finance officer of Circuit City, taking over for Bruce H. Besanko, who left to take a job at OfficeMax less than a week after Circuit City announced it was liquidating.
Keeping executives has been a matter of concern for the chain as it tries to maximize its value for outstanding creditors.
Earlier this month, a bankruptcy judge allowed Circuit City to pay more than 150 top executives, managers and other employees up to $4 million in retention bonuses.
Of the bonus money, $1.63 million was to go to 14 executives.
The list of the executives to get the bonuses was sealed, though an earlier filing listed corporate attorney Reginald D. Hedgebeth as one who qualified for the money.
Hedgebeth is one of the executives leaving tomorrow. Fired along with Hedgebeth were: Chief Operating Officer John T. Harlow and Circuit City's senior vice president of human resources, Eric A. Jonas Jr.
In order to get the bonus money, certain tasks have to be accomplished by target dates.
Cimino said last night that none of the bonus money had been paid out yet because the target dates hadn't been reached.
Because of that, the bonuses then will be split among the smaller pool of remaining executives.
Marcum took himself out of running for the money.
Tom Arnold, a professor of finance at the University of Richmond's Robins School of Business, said keeping on several executives and members of the board is standard for a company that's shutting down.
"Basically, you still need a chain of command all the way through the shutdown, which is why the CEO, controller, and a few directors remain until the end," he said.
"There are still procedures that will require authorization from these posts within the firm."
A year-ago April, Circuit City reported having 2,689 full-time equivalent employees in the Richmond-area.
In all, the company began laying off about 34,000 people starting in January when it began liquidating its assets after failing to find a buyer or the financing that would keep it operating.
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Contact Louis Llovio at (804) 649-6348 or LLLovio@timesdispatch.com.
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