Circuit City Buyout?
from the going-private dept
A lot of retailers have been struggling lately to figure out how to deal with online competition, and nowhere is that more obvious than in the consumer electronics space — where deals online are often better (and with less pressure) than those in retail stores. It’s not entirely clear how the various retailers should respond, but one investment firm obviously feels that being a public company makes things more difficult. Highfields Capital Management is offering $3.25 billion in cash to buy Circuit City and take the company private. While it may be true that being private will help the company respond more quickly, it’s still not clear how they’re going to be able to compete — and going through a big ownership change can certainly slow a company down while it happens.