Best Buy Chairman Abruptly Resigns; Company in Trouble?
Best Buy founder and chairman Richard Schulze has unexpectedly resigned from the company effective immediately. It is just the latest in a string of recent hurdles encountered by the home electronics superstore.
Schulze had originally planned to leave the company at the end of 2012, and remain on the board of directors through the end of 2013 to ensure a smooth transition. He still owns a 20 percent stake in the company.
This sudden decision by Schulze comes on the heels of Best Buy CEO Brian Dunn resigning from the company just two months ago. Earlier this year the company also announced plans to close a number of under-performing stores across the country.
Best Buy stock has also taken a beating. Since its 2012 high in February, the stock's value has tumbled almost 23 percent.
Another headache for Best Buy is increasing competition from rival hhgregg, as well as from other popular discount stores and online retailers like Amazon. It seems as though more and more consumers are discovering that the store doesn't in fact always offer the 'best buy.'
All things said, many industry insiders are now beginning to wonder if this is a storm that Best Buy can survive.
Company veteran Hatim A. Tyabji will be taking over as chairman effective immediately. Only time will tell if he will be able to save this crippled ship from sinking.