Former CEO of Circuit City nabs $350,000 in bonuses
The ex-CEO of Circuit City (you know, the guy who has that "ex" distinction because his company went bankrupt) has gotten approval for a $350,000 bonus and will also be paid hundreds of dollars an hour for consulting work he provided in the retail chain's final days.
Judge Kevin R. Huennekens is presiding over the defunct chain's bankruptcy proceedings. He approved a $350,000 bonus package for former CEO James A. Marcum, even though Circuit City still owes millions of dollars to its creditors.
"The full experience, expertise, unique skills and enthusiastic involvement of Mr. Marcum has been beneficial to the [Circuit City’s] efforts to maximize value for their estate," wrote Huennekens in his ruling, according to the Richmond Times Dispatch.
The decision comes more than a year after Richmond, NC-based Circuit City, formerly the second-largest electronics retailer in the country, was forced into Chapter 11 bankruptcy. More than 33,000 employees found themselves without a job and 600 big-box retail locations were vacated. These stores have been replaced with everything from Goodwill Stores to organic grocery markets.
Circuit City's namesake and related trademarks were sold to Systemax, which reopened CircuitCity.com. All fees paid for that acquisition were used to help settle the retailer's massive debt. Systemax also bought the rights to the CompUSA brand when that store went out of business.
Marcum will get $175,000 of his bonuses by the end of this week. The rest will be paid as soon as the final liquidation plan is in place. Additionally, he will be able to claim as much as $62,500 a month for consulting fees for his involvement in maximizing liquidation after Circuit City was dissolved.