Best Buy CEO resigns; "personal conduct" to blame

When Best Buy first announced earlier this morning that its CEO Brian Dunn had decided to resign, the move was not unexpected. The big US electronics store chain has reported just a few days ago that its revenues were below expectations and that 50 of its stores would be closed.

And then things got more interesting. The Wall Street Journal is now reporting that Dunn left after Best Buy started conducting an investigation into his "personal conduct". In a statement, Best Buy said:

Certain issues were brought to the board's attention regarding Mr. Dunn's personal conduct, unrelated to the company's operations or financial controls, and an audit committee investigation was initiated. Prior to the completion of the investigation, Mr. Dunn chose to resign.

Best Buy offered up no further details on their investigation. Dunn, who worked at Best Buy for 28 years and became its CEO in 2009, has yet to comment on Best Buy's new announcement. In a statement this morning in Best Buy's original press release, Dunn said, "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."

Best Buy has named one of its board members, G. Mike Mikan, as its interim CEO until a permanent replacement is named.

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"personal conduct, unrelated to the company's operations or financial controls"
By definition, that is therefore no business of the board or an audit committee. I find it troubling that an investigation was launched in spite of that.

I go to best buy often and rarely do i have a problem. I'll some of their staff sometimes are not that great but thats every where. I purchased a lg plasma tv 50" 4 years ago with their geek sqaud warranty and just recently the tv started to dye. They sent someone out to see if it could be repaired and they could no longer get the part. So they replaced the tv with a better one no questions asked in 3 days.

Glad I have Fry's and Microcenter near me. Of course I use those store's ads for a Best Buy price match to get the RZ points.

I haven't stepped foot in in a Best Buy in many years. Their prices are ridiculous and the teenage sales staff constantly pushing too hard to sell useless warranties was enough for me to start buying everything online. Which I much prefer now, better prices, no lines and usually a bunch of good reviews to keep me from buying something stupid on impulse or bad sales advice.

Every store I can remember were preying on the very young and the very old. But if you don't have anything else in your town or don't like buying online, I can see where even this would be better than nothing.

Since people only go to Best Buy to look at electronics before ordering them on Amazon, they should change their business model to Best View. Charge a $5 entrance fee and remove all the salespeople. It would be like a shopping museum.

Enron said,
Since people only go to Best Buy to look at electronics before ordering them on Amazon, they should change their business model to Best View. Charge a $5 entrance fee and remove all the salespeople. It would be like a shopping museum.

Oh Lord, that cracked me up real hard!

GS:mac

As an employee its scary to go through this, but we all knew it had to happen. We need someone who better understands the new market and how to better connect with our customers. Using a finer tooth comb when hiring people wouldn't be a bad idea either.

Personal Conduct? What'd he do? Stop minting money for the company? Siphon off company's profits for a working conference in the Bahamas?

starbearer said,
Personal Conduct? What'd he do? Stop minting money for the company? Siphon off company's profits for a working conference in the Bahamas?

As others have said: It's probably anything BUT this.

IMHO, pretty shady to put a bad light on your CEO's person just because your ship is sinking.
Sure the CEO is to blame, too, but they explicitly say it's nothing BB-related, that's the shady part.
Now people jump to conclusions (not referring to you) like "he sure did something illegal" or morally wrong or this or that or stuck a finger up his uh huh... yupp.

Shenanigans.

GS:mac

Best Buy?
More like Mediocre Buy.

Last time I checked they were reaching and are getting stumped by competitors.
I think that a new CEO might blow some fresh air into BB - sorry, MB, but he/she really has to blow quick.

GS:mac

Glassed Silver said,
Best Buy?
More like Mediocre Buy.

Last time I checked they were reaching and are getting stumped by competitors.
I think that a new CEO might blow some fresh air into BB - sorry, MB, but he/she really has to blow quick.

GS:mac

i dunno where you live but there are no competitors here in michigan. unless your talking about the mom & pop computer stores that have no relevant equipment. if best buy goes under i sure hope walmart & meijers start selling more computer based items.

smooth3006 said,

i dunno where you live but there are no competitors here in michigan. unless your talking about the mom & pop computer stores that have no relevant equipment. if best buy goes under i sure hope walmart & meijers start selling more computer based items.


Obviously someone will fill the market gap, because it's easy money.
(Regional monopoly? Hell yeah!)

That is of cause ignoring any online shopping portals like Amazon, eBay, Dell, Apple, etc...

GS:mac

Glassed Silver said,

Obviously someone will fill the market gap, because it's easy money.
(Regional monopoly? Hell yeah!)

That is of cause ignoring any online shopping portals like Amazon, eBay, Dell, Apple, etc...

GS:mac

of course best buy is expensive, there is no competition around anymore. i hope they can be saved because another empty building sitting around for years is not something we need. that was my point.

smooth3006 said,

of course best buy is expensive, there is no competition around anymore. i hope they can be saved because another empty building sitting around for years is not something we need. that was my point.


Indeed.
Also I think it'd be pretty bad for all the employees.

GS:mac

smooth3006 said,

of course best buy is expensive, there is no competition around anymore. i hope they can be saved because another empty building sitting around for years is not something we need. that was my point.

Oh but there is. Places like Walmart and Target are cutting into their sales. While neither of those places carry the same amount of items that BB has, they do cut a lot of sales from the non-computer areas like movies, small kitchen appliances and games. They can't replace BB but they can lower revenue and that is the issue.

Yeah, from what I read it was for reasons other than personal conduct. The store hasn't been making that much of a profit and he wasn't really doing that much to fix the issues. The personal conduct thing might just be a way to hide the fact that, as smooth3006 said, the franchise is a "sinking ship."

Edited by briangw, Apr 11 2012, 2:21am :

sounds like he is jumping off a sinking ship. i really hope they can get their act together as we do not have any good electronics stores around anymore now that both circuit city and compusa are gone.

smooth3006 said,
sounds like he is jumping off a sinking ship. i really hope they can get their act together as we do not have any good electronics stores around anymore now that both circuit city and compusa are gone.


Here in the west coast we have Fry's Electronics, which has always been superior to Best Buy, CompUSA and Circuit city. From selling single capacitors to 60" screen televisions, they have everything.

vincent said,


Here in the west coast we have Fry's Electronics, which has always been superior to Best Buy, CompUSA and Circuit city. From selling single capacitors to 60" screen televisions, they have everything.

Yeah I went to Seattle once and I really liked Fry's electronics..bought myself a motherboard there. I didn't even realize Best Buy weren't doing that well. In Vancouver they seem to be the only 'known' electronics store, other than Future Shop

vincent said,


Here in the west coast we have Fry's Electronics, which has always been superior to Best Buy, CompUSA and Circuit city. From selling single capacitors to 60" screen televisions, they have everything.

I like fry's. We have one in chicago. But the door nazi's are hardcore. really annoying. I refer microcenter or tigerdirect/compusa in naperville.