Is this the end for the electronics dealer as we know it?
The electronics dealer Best Buy announced Tuesday that CEO, Brian Dunn has resigned after 28 years at the company.
Best Buy is attempting to restructure after a net loss of $1.2 billion for the fiscal 2012. Brian Dunn’s resignation comes less than two weeks after Best Buy stock (BBY) dropped 8.5 percent after the company announced the closing of 50 big box stores, the cutting of 400 jobs in an attempt to trim $800 million in expenses.
“I’m not satisfied with the pace or degree of improvement,” Dunn said in a conference call weeks ago. “We still face an uncertain consumer environment. The changes will take time to flow through, but we are well positioned.” BBY is down as the company plans to cut $230 million in costs this year to generate savings in order to train store employees and spend money on promotions. The main cause of the company losing out is due to the easy accessibility of an online market dominated by Wal-Mart and Amazon.
Best Buy named Mike Mikan as the interim CEO in a statement, “We thank Brian Dunn for his many years of service to the company and wish him well in his next endeavors,” said Richard Schulze, the founder and chairman of Best Buy. “As we move forward, we are very pleased to have a strong leader with Mike Mikan’s credentials as interim CEO.”
Brian Dunn released a subsequent statement, “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.”