Circuit City Director Leaves After BlockBuster Drops Bid

July 3, 2008 9:28 a.m. EST

New York, NY (AHN) - A director of Circuit City resigned Wednesday after video rental company Blockbuster withdrew its acquisition bid for the electronics retailer. Mikael Salovaara was the lead outside director for Circuit City.

In a statement to the Securities and Exchange Commission, Circuit City said Salovaara's departure was not due to any internal squabbles. However, neither the company nor Salovaara would comment further.

Circuit City, based in Richmond, Va., said Allen B. King would replace the outgoing lead director.

On Wednesday, Blockbuster said it would withdraw its bid of around $1 billion, citing market conditions and the completion of due diligence.