Best Buy Founder/Chairman Resigns 1 Year Early
June 8, 2012 6:20 PM
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He is also looking at possible options for his 20.1 percent stake in Best Buy
chairman and founder has resigned one year ahead of schedule
as the brick-and-mortar electronics store struggles to keep its head above water.
Richard Schulze, 71, chairman and founder of Best Buy, resigned from his position yesterday and it is effective immediately. He was originally scheduled to resign in June 2013, but has decided to leave ahead of time.
“There is an urgent need for Best Buy to reinvigorate growth by reconnecting with today’s customers and building pathways to the next generation of consumers,” said Schulze. “Accordingly, I have shared my views with the board and today informed them of my decision to resign as Chairman and a director, effective immediately, in order to explore all available options for my ownership stake.”
At Best Buy’s annual meeting last month, the new succession plan was laid out for June 2013. It was announced that Schulze would be replaced by Hatim Tyabji as chairman, but the transition wasn’t supposed to take place until June 2013. It is unclear why Schulze resigned early.
Schulze’s resignation comes amidst an investigation into Best Buy’s former CEO Brian Dunn, who has been accused of
misusing company funds
while conducting a relationship with a female subordinate. Dunn resigned from CEO in April.
To make matters worse, Best Buy recently posted a $1.7 billion quarterly loss. Also, in late March, Best Buy said it would close 50 of its 1,100 retail stores in order to save $800 million.
Schulze will be looking into other options for his 20.1 percent stake in Best Buy.
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6/13/2012 2:03:10 PM
Its super tough to have competitiveness prices online vs the high over head brick and mortar stores have to endure. How to get pricing when online only needs to have a warehouse with minimal overhead, and retail stores have such huge overhead. The entire industry is going that way not just best buy.
Look at circuit city and most retail stores will be closing due to online, as retail the biggest issue with store front is commercial realestate pricing is whats putting most of them out of business.
Checked a recent retail store 1200sqft, wanted 5000 a month for it, thats more then twice what most will pay for a twice that size home mortgace space. SMall businesses cant keep up with that pricing wil low retail sales in todays market.
"I modded down, down, down, and the flames went higher." -- Sven Olsen
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