In what appears to be a case of getting out while the going's good, Best Buy chairman and founder Richard Schulze has abruptly resigned from the company, and now he's trying to figure out what to do with his 20.1% stake in the company. Schulze had been planning to resign on June 21st, and step down as director next year, after an investigation found that he was aware of former CEO Brian Dunn's 'inappropriate relationship' with a female employee.
Best Buy has been suffering from a slump in profits since last year, and announced the closure of 50 stores this year. The stock took another hit from Schulze's departure, despite his assurances that Best Buy has a future. Hopefully Mr. Schulze can unload some of that 20.1% stake before it slumps further.
“I continue to believe in Best Buy and its future,” Schulze said, noting that “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.” Well, that's certainly reassuring.
In the meantime, it looks like Best Buy could go the way of Circuit City sooner than later unless something drastic happens. Where will we get our cassette recorders then?