best buy chairman resigns - article analysis
ARTICLE 1.
Best Buy Chairman Resigns, Plans to Sell Company Stake
By Stephanie Mlot (June 7, 2012 04:45pm EST)
Best Buy's upper-echelon shake-ups continued this week, when its founder announced his resignation.
Richard Schulze today said that he will be moving on from the company that he founded almost five decades ago. After 36 years as chairman of the board and Best Buy's largest shareholder, Schulze remains indebted to the company.
"I continue to believe in Best Buy and its future — and care deeply about its customers, employees and shareholders," he said in a statement.
Schulze, 71, previously announced plans to step down as chairman after the annual meeting on June 21, and remain with the company as a director through the 2013 meeting. Instead, he said today that he is leaving his post to explore his ownership stake options.
"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," he said in his statement.
"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," he said.
Shculze, whose net worth was valued by Forbes at $2 billion as of March, is looking to sell his $1.3 billion stake in the company he built, originally founded as the Sound of Music store in Minnesota.
Today's announcement continues the company's months of management reorganization, beginning with April's resignation of former Chief Executive Brian J. Dunn, after he allegedly carried on an inappropriate relationship with a female employee.
An internal investigation ousted Schulze, who did not report his knowledge of Dunn's misconduct.
Best Buy is struggling with more than personnel issues, since it lost $1.23 billion to Amazon and other retailers in the most recent fiscal year, the New York Times reported.
Early this year, Best Buy announced plans to shut down 50 of its retail
Best Buy Chairman Resigns, Plans to Sell Company Stake
By Stephanie Mlot (June 7, 2012 04:45pm EST)
Best Buy's upper-echelon shake-ups continued this week, when its founder announced his resignation.
Richard Schulze today said that he will be moving on from the company that he founded almost five decades ago. After 36 years as chairman of the board and Best Buy's largest shareholder, Schulze remains indebted to the company.
"I continue to believe in Best Buy and its future — and care deeply about its customers, employees and shareholders," he said in a statement.
Schulze, 71, previously announced plans to step down as chairman after the annual meeting on June 21, and remain with the company as a director through the 2013 meeting. Instead, he said today that he is leaving his post to explore his ownership stake options.
"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," he said in his statement.
"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," he said.
Shculze, whose net worth was valued by Forbes at $2 billion as of March, is looking to sell his $1.3 billion stake in the company he built, originally founded as the Sound of Music store in Minnesota.
Today's announcement continues the company's months of management reorganization, beginning with April's resignation of former Chief Executive Brian J. Dunn, after he allegedly carried on an inappropriate relationship with a female employee.
An internal investigation ousted Schulze, who did not report his knowledge of Dunn's misconduct.
Best Buy is struggling with more than personnel issues, since it lost $1.23 billion to Amazon and other retailers in the most recent fiscal year, the New York Times reported.
Early this year, Best Buy announced plans to shut down 50 of its retail