Best Buy Founder Looks to Go Private with Help of Former Execs
July 31, 2012 5:42 PM
comment(s) - last by
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
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.
The Wall Street Journal
This article is over a month old, voting and posting comments is disabled
RE: TVs are what are killing Best Buy
7/31/2012 10:43:47 PM
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.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
Quick Note: Best Buy Axes 2,400 Jobs
July 9, 2012, 4:00 PM
Best Buy Founder/Chairman Resigns 1 Year Early
June 8, 2012, 6:20 PM
Best Buy Chairman Resigns after Probe Finds He Withheld Information
May 15, 2012, 9:29 AM
Best Buy Reports Earnings, Announces the Closing of 50 Stores
March 29, 2012, 1:26 PM
Smart Security Cameras: 5 Good Choices For Any Budget
July 25, 2016, 7:13 PM
Top 5 Smart Watches
July 21, 2016, 11:48 PM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Most Popular Articles
Say Goodbye to Data Plans - Sprint and T-Mobile offer Unlimited Data
August 22, 2016, 6:12 AM
2 NEW PlayStation 4 Models - Unveiling September 7th
August 23, 2016, 6:23 AM
Uber - Everyone's Autonomous Car Driver?
August 20, 2016, 6:01 AM
iPhones May Get Curved Screens Next Year
August 24, 2016, 6:45 AM
Lenovo vs. Asus vs. HP - Best Laptop Under $500.00
August 19, 2016, 4:00 AM
Latest Blog Posts
Coming Soon - Drones and Airports
Aug 24, 2016, 12:40 PM
SolarCity’s Gigafactory: A Milesone in Emerging Technology by Lily Emamian - 15 August 2016
Aug 15, 2016, 6:30 AM
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information