Best Buy Company, Inc. announced this past Monday that two of its directors had resigned, including one that had served in the role of chief executive in the past. These departures come seven months after the departure of company founder Richard Schulze who is now working to make a bid for the struggling retailer.
Businessweek Magazine has published online their latest annual list of the five worst CEOs of the year. The short list, not one that CEOs hope to see their names featured on, is topped this year by a CEO from the consumer electronics retailing industry – none other than Brian Dunn of Best Buy. Dunn, who left Best Buy in April in the wake of a scandal involving an inappropriate relationship with a female subordinate, earned the title of the absolute worst chief executive on 2012 – and it wasn’t even because of the affair!
See why Businessweek feels Dunn is the “absolute worst chief executive of 2012″… [Read more…] about Businessweek Names Best Buy’s Brian Dunn as Worst CEO of the Year
After the close of the market today, Best Buy warned Wall Street that its third quarter earnings and same-store sales will be significantly below the same quarter last year. The company also announced that head of U.S. business Mike Vitelli, and other executives, will leave the company at the end of this fiscal year in early February.
But the warning to Wall Street went even further… [Read more…] about Best Buy Warns Profits Will Be ‘Significantly Below’ Last Year, Cuts Senior Managers
It’s been a rough week for Best Buy. And if something doesn’t happen soon…it’s only going to get worse as the company is on a slippery slope and quickly losing the support of Wall Street. Already the company was embroiled in turmoil having recently dismissed CEO Brian Dunn for an inappropriate relationship with a young, female employee…scolding and then losing founder and chairman Richard “Dick” Schulze who knew about the relationship and didn’t tell anyone…and then enduring a reasonably PR-savvy public campaign as Schulze announced intentions to buy the company and take it private. Finally – as if to emphasize how bad things had become – this past Monday the company announced their fiscal Q2 results with a shocking 91% drop in profits. But wait! There’s more…
How bad is it at Best Buy? They had to pay someone $32 MILLION to come run it!… [Read more…] about Is Best Buy Now Worst Buy?
Reuters is reporting that the Best Buy board of directors has asked founder and former chairman Richard Schulze to name the private equity (PE) firms that he can line up to help him buy out Best Buy stock and take the company private. But reportedly Schulze is playing coy, saying only that there’s a “number of leading private equity firms” prepared to make a significant commitment.
In an email to Reuters, the board said, in effect, it will take its time to study the proposal… [Read more…] about Best Buy Board to Schulze: You Show Us Yours Before We Show You Ours
Bloomberg News reported on Monday that the Best Buy Co. board of directors has received a letter with an offer from company founder and former chairman Richard Schulze to acquire all outstanding shares of the company stock and take it private. Schulze is said to have the support of at least two private equity companies and an investment bank that is confident it can arrange adequate financing. Schulze also says several former Best Buy executives are interested in joining him in the process of reinvigorating the company.
Analysts are skeptical… [Read more…] about Best Buy Founder Schulze Rounds Up the Old Gang for One Last Try
<May 16, 2012> The news out of Best Buy Stores, Inc. continues to be ugly. Earlier this week, we learned that the board investigation into the unseemly Brian Dunn affair has taken an unexpected turn, resulting in Best Buy founder and board chairman Richard Schulze being forced out of his own company. And yet, some market analysts are celebrating. Why? [Read more…] about Best Buy’s Founder is Forced Out as Ex-CEO Receives $6.6 million Severance
<April 18, 2012> On Monday, Best Buy revealed the specific store locations it planned to close as previously announced by former CEO Brian Dunn, just days before he unexpectedly resigned under potentially scandalous circumstances. In the wake of reporting disappointing financial results, Dunn had announced – among other things – that the company would shutter 50 of its big box superstores, but did not identify specifically which store locations would close. [Read more…] about Best Buy Reveals List of Stores to be Closed
<April 11, 2012> Best Buy Company’s abrupt announcement on Tuesday morning that CEO Brian Dunn, a 28-year veteran of the nation’s top electronics retailer, was leaving the company effective immediately, caught industry and financial analysts by surprise. No one saw it coming although in view of Best Buy’s dismal financial performance, the company’s explanation that it needed new leadership to forge a new strategic direction for the company seemed to ring true. [Read more…] about Best Buy’s Dunn is Done, But an Investigation into His Personal Misconduct Continues
<April 4, 2012> Best Buy Co. may be starting to feel a little like Rodney “I don’t get no respect” Dangerfield as Wall Street reacted strongly to news today that Standard and Poor’s may drop the industry’s largest retailer’s bond rating to “junk” status. As word leaked out, Best Buy’s stock dropped 2.55%, more than twice the rate the overall Dow dropped. [Read more…] about Best Buy Bombed by Wall Street as Word Comes Its Bonds May Get Rated ‘Junk’