News broke yesterday that Brian Dunn, Best Buy’s CEO has resigned effective immediately. My immediate thought was to the folks over at Future Shop and what impact this will have on the team there. Back in 2001, Best Buy acquired Future Shop for $580 million and Future Shop continued to grow and become the largest retailer of digital products across Canada. It is no secret that retailers have been struggling over the years as more consumers turn to the Internet to shop for products and services. Best Buy had announced they were shutting down 50 retail stores, last week they also missed their quarterly earnings so it should not come as much of a surprise as Dunn steps down today.
INNEAPOLIS–(BUSINESS WIRE)–The board of directors of Best Buy Co., Inc. (NYSE:BBY) today announced that Brian Dunn has resigned as chief executive officer and director. There were no disagreements between Mr. Dunn and the company on any matter relating to operations, financial controls, policies or procedures. There was mutual agreement that it was time for new leadership to address the challenges that face the company. Director G. Mike Mikan has been named interim CEO to lead the company while a search for a new CEO is underway. Richard Schulze, the founder of Best Buy, continues to serve as chairman.
“We thank Brian Dunn for his many years of service to the company and wish him well in his next endeavors”
“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,” said Dunn.
“We thank Brian Dunn for his many years of service to the company and wish him well in his next endeavors,” said Schulze. “As we move forward, we are very pleased to have a strong leader with Mike Mikan’s credentials as interim CEO.”
“The Best Buy team and I will be extremely focused on successfully managing this period of transition. I want to assure our employees, customers and other key stakeholders that we will work together to achieve our company’s growth and profitability goals,” said Mikan.
Mikan, who will remain on the board while serving as interim CEO, has been a Best Buy director since April 2008. He formerly served as executive vice president and chief financial officer of UnitedHealth Group Incorporated and chief executive officer of Optum, a health care services company and affiliate of UnitedHealth. Mikan has strong financial and operational expertise, as well as public company leadership experience.
A search committee of the board of directors has been created consisting of the founder and members of the nominating, corporate governance and policy committee. The committee will oversee the process for the identification and selection of the next CEO.
Best Buy and Future Shop have been trying to keep up with the digital times, but unfortunately they have been a bit slow to to make the transition, and new digital-only players are entering the market which will only bring more competition to bricks and mortar retailers.