Best Buy CEO Resigns
Best Buy CEO Brian Dunn resigned on Tuesday of this week in what was initially described as a “mutual agreement.” Director Mike Mikan will serve as interim CEO while the company looks for a permanent replacement for Dunn.
“There were no disagreements between Mr. Dunn and the company on any matter relating to operations, financial controls, policies or procedures,” according to the first official presss release. “There was mutual agreement that it was time for new leadership to address the challenges that face the company.”
A following statement, issued by Best Buy late on Tuesday, said that Dunn resigned amid an audit committee investigation into his personal conduct that had yet to be completed.
“Certain issues were brought to the board’s attention regarding Mr. Dunn’s personal conduct, unrelated to the company’s operations or financial controls, and an audit committee investigation was initiated,” the company said in a statement. “Prior to the completion of the investigation, Mr. Dunn chose to resign.”
As reported earlier in the month, Best Buy is planning to close 50 of its U.S. big box stores, eliminate 400 jobs, and trim $800 million in costs. Furthermore the company is shifting its model away from the larger big-box locations and towards the smaller (and more profitable) Best Buy Mobile stores throughout the country. There’s no word yet as to how many of the larger locations scheduled for close feature Best Buy’s “store within a store” MI operations which launched in 2008.
Best Buy shares fell more than 3% in heavy volume on Tuesday.