RICHMOND, Va. — Circuit City Stores Inc. plummeted to historic lows in trading Wednesday after Blockbuster Inc. withdrew its takeover bid, causing investors to question the consumer electronics retailer’s future.
Shares of the Richmond, Va.-based company fell 23 cents, or 9 percent, to close at $2.32 in trading Wednesday, after hitting a more than 17-year low of $2.10 earlier in the day.
The company, which has seen its shares fall 86 percent from its 52-week high of $15.33, says it will continue to review strategic alternatives but said that doesn’t require Blockbuster’s presence.
Blockbuster pulled its bid to buy Circuit City on Tuesday night, citing market conditions. The Dallas-based movie-rental chain had proposed a more than $1 billion deal in April with the plans to create a 9,300-store chain to sell electronic gadgets and rent movies and games. Blockbuster shares rose 14 cents, or 5.6 percent, to close at $2.65.
Circuit City has seen only one profitable quarter since the second quarter of 2007 but continues to defend its multiyear turnaround plan despite some missteps and has asked shareholders for the time necessary to leverage the company’s future.
“If you look at our largest competitor (Best Buy Co. Inc.), this is still a healthy business,” chief executive Philip Schoonover reiterated to reporters after the annual shareholder meeting late last month. “The market is within our control if we get the time.”
