JC for what it’s worth, I was in management with Circuit until a little over three years ago when we set out on our own. When the layoffs you refer to did occur, I knew many of the folks who were both implementing the decision and those affected. In that case specifically, salary levels had become rather high relative to production for quite a few of the “old timers,” $24 an hour by comparison to other competitors paying $8.50 hourly by default established a difficult margin to overcome in a very competitive and margin decreasing market. The error IMO was that these great folks were “let go” without individual review or the ability to renegotiate. Many BTW were rehired, as being discussed here. What ultimately killed Circuit was not this action, it was recoverable as this will be for EA and Mythic, provided the right decisions are made. Circuit went under due to very poor leadership and decision making, coupled with a fair dose of the personal greed we all see today in many businesses and institutions. Circuit released the last of its original executive leadership almost four years back, and brought in as a CEO the fella who had previously been Best Buy’s COO, and had been passed over by the latter for the CEO slot there. Should have told the Circuit BOD something, but no. Under this man’s guidance, the company lost its direction and identity. It led those on the floors to have no “niche,” and become sandwiched between aggressive commission based competitors and larger retailers with top of mind recognition advantages. Once finally realized at the senior levels and some course correction had begun, it was too late. And by a very small degree actually. Truth be told in business history, had Circuits “Black Friday” sells been equal to their first day’s liquidation sells (prices were much lower on the previous day), the company would still be around today.
I don’t want to see Draconi go either. I don’t want to see any of our team go unless it’s voluntary with an eye toward a better opportunity. I honestly see all of them as part of our UO family, even when something they do or don’t do irks me. If Sakkarah assumes a position of greater responsibility, there will be no loss of direction or identity. And she isn’t the only one currently there who fills this bill. So as an institution in and of itself, UO will be fine, despite the personal sense of loss along the way.