Best Buy CEO resigns; shares fall
Brian Dunn steps down as the electronics retailer continues to lose market share to companies like Amazon. Director Mike Mikan will act as the interim CEO.
Shares of Best Buy (BBY) rose briefly Tuesday after the company announced that its CEO has resigned, but were falling by mid-morning.
Best Buy CEO Brian Dunn said Tuesday he is leaving the company. Director Mike Mikan is taking over as interim CEO while the retailer searches for Dunn's replacement.
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"There were no disagreements between Mr. Dunn and the company on any matter relating to operations, financial controls, policies or procedures," a Best Buy statement said. "There was mutual agreement that it was time for new leadership to address the challenges that face the company."
Mikan was previously chief financial officer and executive vice president at UnitedHealth Group (UNH).
"I have enjoyed every one of my 28 years with this company, and I leave it today in position for a strong future. I am proud of my fellow employees and I wish them the best," Dunn said in the press release.
The company has come under pressure in recent years as rival Amazon (AMZN) has taken market share. Best Buy recently posted fourth-quarter results that missed Wall Street's revenue forecast. It also announced on March 30 that it plans to close 50 U.S. stores in 2013 in an effort to cut costs by $800 million by fiscal year 2015.
Shares of Best Buy rose 2.91% to $23.31 in early trading Tuesday. The stock has risen 20 cents, or 0.86%, year to date.
TheStreet Ratings gives Best Buy a C grade and hold rating.
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Bad customer service is everywhere because humans raised in the US are everywhere!! We suck at education of the work force before they become the work force. It is not an issue that should be continually fixed by employers but by our country. We need to produce a better human, one that is responsible, caring and can make good choices for them selves and is not an obese mess that we all must take care of. Why struggle and work hard for an education and a chance when you can sit on your fat a$$ and collect OPM (others people money). If we truely want change we must force it upon our own people in the ways of eating, learning, exercising and living well. lol.........good luck.
As a former Best Buy employee, this saddens me; Brian Dunn was inspirational and innovative, though I disagreed with how he proposed to reorganize the company.
What really infuriates me about everyone wishing Best Buy to go out of business is that you are all the same people complaining about the job market/economy. In this day and age, we should be proud of an American born company that had stayed alive as long as Best Buy and we should be terrified of the nearly two hundred thousand people who would lost their jobs in American alone. That's not including Best Buy Canada, Mexico and overseas. We would see a blacklash/raise in price of products online. Companies like Apple and BOSE and Klipsch would pull into their own private sectors (Right now, Best Buy is the only retailer - online or not - that is fully authorized to sell full line-ups of those manufactures.)
Amazon would be forced to raise their prices due to higher demand thus higher overhead, manufactures would then decide to charge Amazon the same cost they have charged Best Buy. And whoever said that Best Buy charged 20% more obviously doesn't understand that for core products, like TV's, laptops and such - Best Buy sells the majority of that right at or below cost - they're not making any money on it. Sure, accessories are more expensive, but...
I do not work for Best Buy anymore, but I know from working at the four stores over 3 years in two states that there are amazingly intelligent, empowered and strong future leaders working in this company. You should all be ashamed for grouping them all in with the bad eggs. I can promise you, Best Buy employees REALLY strive to help customers, they almost all believe full-heartedly in their products and services and even if you did have a bad experience...give them another try.
We need Best Buy.
CEO OF MAJOR COMPANY
First off, you're going to have to come up with a different name. No CEO is going to be sitting in his office posting thoughts on an MSN board, I think they have better things to do with their time so, with that said, cut the BS buddy. Secondly as much competition as there is between companies, no CEO is going to wish the demise of another company, they don't think that way, they're smarter than that, if something goes out of business they know they could be next.
Now you want to talk about pissing people off. Lets talk about how spoiled and how people in this country are a bunch of babies and cry every time they're not pleased about something, what company doesn't have to deal with that. There isn't a company out there that doesn't have complaints, people are complaining everywhere I go.
And as far as the lie you were supposedly told, maybe it was just a misinformed employee or maybe the employee didn't have the knowledge to give you the correct information or maybe you just didn't understand their policy about something and wanted to blame BB because you weren't happy about something. BB's store policies are very clearly posted for you to read, it's your job to understand them when making a purchase or do you need your hand held everywhere you go? Mistakes happen, that's life, but when it happens today people like you tell the world how bad a company is instead of just excepting this is not a perfect world, people are spoiled brats, lets keep complaining until every company in this country is out of business.
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