Earlier this month we reported on some of Best Buy founder Richard Schulze's troubles, and how he might be planning to leave the ailing company earlier than expected. According to the Wall Street Journal's sources, though, it might all be part of a crazy master plan that could save the company.
Although Best Buy stock has actually done better in the last month or so than it has in the last three years, it's still facing a ton of store closures, and the future doesn't look any brighter.
The company's board of directors hasn't been exactly supportive of Schulze, partly due to his failure to inform them of former CEO Brian Dunn's inappropriate relationship with an employee, and The Wall Street Journal suggests that his plan involves dumping the whole board and taking control of the company himself.
Despite a changing market that's favoring online commerce and relegating brick-and-mortar stores to little more than glorified showrooms, Schulze obviously has an emotional connection with the company he created, and that's plenty of reason for him to believe that he can turn it around.
Taking the company private would mean that Schulze would have to buy the other 80% of the company that he doesn't already own. Even with an ailing business like Best Buy, that's not chump change, and Schulze would no doubt need some help from other investors. If he really is planning to take Best Buy private again, he'll first have to convince enough people that he's capable of turning it around.
Via: The Huffington Post
Source: The Wall Street Journal