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Richard Schulze  (Source: nypost.com)
Schulze has been mulling over several options including going private and selling his 20 percent stake in the company

Best Buy has been in hot water for awhile now due to its inability to compete with Internet retailers, and the company's founder is looking to take Best Buy private with the help of former executives. 
 
Richard Schulze, founder of Best Buy, is currently looking to bring former Best Buy executives onboard to help him take the company private. He hasn't reached any agreements with anyone so far, but he is in talks with two people in particular: former Chief Executive Officer Brad Anderson and Senior Vice President of Enterprise Capabilities J.D. Wilson, whose position is being eliminated. 
 
Schulze has been considering taking the company private after stepping down as chairman of the board back in June. Schulze resigned after an internal investigation discovered that he had withheld information about former CEO Brian Dunn's relationship with a female employee from the board. 
 
Ever since, Schulze has been mulling over several options including going private and selling his 20 percent stake in the company. 
 
However, analysts say going private won't be so easy. About $1-$2 billion would need to be raised from a private-equity firm and another $7-$8 billion in debt would need to be raised. It would be difficult to get investors to sell when a takeover would cost about $30 per share, giving it a value of $11 billion.
 
Best Buy has has problems ever since Internet retailers like Amazon hit the scene, offering cheaper prices for the same items and low shipping costs. Amazon, at the time, wasn't collecting taxes in very many states either (however, the company recently agreed to collect sales tax in more states in exchange for more distribution centers -- ultimately allowing same-day shipping rates for customers, which could potentially hurt Best Buy even more). 
 
Best Buy was forced to close 50 of its stores back in March/April. With store closings came lay-offs of 400 corporate and support jobs at that time, and then another 2,400 jobs were axed earlier this month. Things aren't looking so hot for the brick-and-mortar retailer, and Schulze is looking to act fast. 
 

Sources: The Wall Street Journal, Bloomberg



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TVs are what are killing Best Buy
By happyfirst on 7/31/2012 7:36:34 PM , Rating: 2
SamsClub, Costco, have really seriously branched out into offering flat panels. And their return policies are more relaxed. It feels like everybody I talk to (including me) buys their tvs at one of the two. Everytime I'm at one of them, I usually see a few tvs in the checkout lanes.

And the last time I walked into a best buy to get a tv was a long time ago, and it was a frustrating experience. I wanted to get a new LED flat panel and the salesgirl wouldn't shut up about plasma this, plasma that, and that I needed to walk into the front room (aka most expensive stuff) for the good stuff. Maybe if they actually tried to sell me WHAT I WANTED, they might have made a sale.

Now, best buy's specialty is just pushing extended warranties and bundling junk with notebook computers to drive up the price even more.




RE: TVs are what are killing Best Buy
By Solandri on 7/31/2012 9:22:54 PM , Rating: 1
quote:
And the last time I walked into a best buy to get a tv was a long time ago, and it was a frustrating experience. I wanted to get a new LED flat panel and the salesgirl wouldn't shut up about plasma this, plasma that, and that I needed to walk into the front room (aka most expensive stuff) for the good stuff. Maybe if they actually tried to sell me WHAT I WANTED, they might have made a sale.

Whoa, a salesperson who actually knew what they were talking about? If you can get over the drawbacks of plasma (burn-in, additional weight and power draw, a faint buzz, and wide angle of view which is actually an advantage but becomes a disadvantage if you compare brightness head-on), it's better than LED/LCD in pretty much every way.

On one level I agree with you that salespeople should show you what you want. But on another level I think they also have a duty to make recommendations if they feel they know the products better than you do. LED/LCD vs. Plasma is currently biased against plasma due to the narrower angle of view on LCDs concentrating light when viewed head on, making them look insanely bright (compounded by display models being set to max brightness). So I think she did the right thing trying to get you to consider plasma. But you're right, once you were insistent on getting LED she should've dropped it and steered you to the LEDs.


By Fujikoma on 7/31/2012 10:43:47 PM , Rating: 2
Please,
It's easier to find a one legged ballerina than it is to find a knowledgable Best Buy employee. I can't stand the constant commercial drone about how good a product is when they've never even asked what I'm going to use it for (such as picking up laptops for family). The first questions out of their mouths should be, 'what are you looking for it to do?' followed by, 'are you willing to overlook certain features to hit the price you want?'.
They need to lay off up-selling expensive warranties that usually overlap with manufacturer's warranties. They need to stop trying to sell a lot of expensive cables to go with equipment (and be more honest about how much 'better' Monster products are). I particularly enjoy the 'can I help you pick out a movie' types who start making recommendations without even discussing films to begin with.
I'd also think they should carry a better selection, or at least allow stuff to be ordered and picked up without charging me for shipping/handling.
I only shop their for bargain bin movies and to price shop, because family always asks for stuff to be fixed after I show up for a holiday visit. My fiancee has finally realized that shopping online is vastly cheaper for her cell phone accessory habit.


By Rukkian on 8/1/2012 12:09:28 PM , Rating: 2
While Plasma may be okay for some, the drawbacks you listed are pretty big. While buy a plasma, when any potential savings go out the window with energy bills.

On top of what you listed, the other big drawback is glare - you really need a dark room to not have glare from a plasma. While our basement is okay for this, many locations have windows, and that is an issue.

This should not have moved to a conversation about what is better, it is about not recommending crap that they get a bigger commission for and being knowlegable. To recommend a certain piece of electronics without knowing the use case, budget, and expected features is just wasting time.

BB lost a lot of credability for me many years ago after one of the many times going in and getting pushy idiot salesmen that try to just upsale on products they have no knowledge of. In this case, I was in there with a co-worker for something for work, but she wanted to look at tv's for home. They had 1080p sets next to some 1080I and 720P sets (a few years ago). She was looking at a 50" 1080p lcd, and "expert" tried telling her she should get the samsung next to it, because it had a higher resolution (even though it was 720P), which of course cost more. I told him that 1080 was a higher resolution, and he told me that the number had nothing to do with resolution, and that I should do some research.

These stories (we all have them) are why it is failing. Why go somewhere like this to have pushy idiots trying to pawn their crap of the month on us for no reason. I still like to go there once in awhile to browse, but usually just to figure out what I may want to buy online. I feel sorry for the suckers that actually go in and think the employees know what they are talking about and that they need the 100$ monster HDMI 3' cable, cause it works so much better.


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