Here’s a Blow for Best Buy’s Board of Directors
Best Buy (NYSE:BBY) announced on Monday that two members of its board of directors have resigned, leaving the company with four vacancies on its 11-person board. The most recent resignations came almost seven months after the electronic retailer’s founder Richard Schulze, who is now bidding to take the company private, left.
The company’s leadership problems have mounted as its fortunes have continued to flounder. Best Buy saw its shares lose 50 percent of their value last year as the practice of showrooming dragged down same-store sales. Electronics shoppers are increasingly using the retailer’s stores to examine and test products before purchasing them from cheaper Internet companies like Amazon (NASDAQ:AMZN), and this tactic has contributed to a drop in same-store sales of 4 percent in the past nine months.
Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.
Neither Matthew Paull nor G. Mike Mikan resigned as a result of any disagreements with the company’s management, Best Buy told Reuters. Mikan, who acted as interim CEO between April and September 2012 after former chief executive Brian Dunn was dismissed for an improper relationship with a female employee, has stepped down, effective immediately. While his resignation was a surprise, the second departure announced by Best Buy was expected. Matthew Paull, who has served on the company’s board since 2008, will retire in April.
Dunn’s impropriety caused Schulze to lose his chairmanship because he failed to notify the board of the allegations, and he resigned from the board in June. Now, Schulze is expected to make an offer to take over the company by the end of February.