Best Buy Founder Looks to Go Private with Help of Former Execs
July 31, 2012 5:42 PM
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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
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RE: TVs are what are killing Best Buy
8/1/2012 12:09:28 PM
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.
"I'd be pissed too, but you didn't have to go all Minority Report on his ass!" -- Jon Stewart on police raiding Gizmodo editor Jason Chen's home
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