Best Buy Chooses Turnaround Specialist As New CEO

Best Buy Chooses Turnaround Specialist As New CEO
News
Like Us On Facebook
Like Us On Facebook

Electronics retailer Best Buy has chosen a new chief executive as it grapples with lagging sales and a proposal to take the company private by its founder.

Hubert Joly has stepped down as CEO of hospitality and restaurant giant Carlson to lead the struggling electronics giant, Best Buy announced Monday morning. Word of the impending appointment was first reported on by the Wall Street Journal on Sunday evening. Best Buy touted Joly as having a record turning around companies in the media, technology and services sectors.

“Hubert’s range and depth of experience in transforming companies is exactly what the company needs at the moment, as is his energetic, imaginative and experienced leadership in executing strategies,” said Hatim Tyabji, chairman of the Best Buy board, in a statement.

Best Buy touted Joly’s experience in leading Vivendi’s video games business and the integration of Universal and Vivendi’s media assets in the U.S., as well as the turnaround of EDS in France.

Joly, who is French, is expected to assume his new roles, as both CEO and president, in early September once he secures a visa, Best Buy said.

The appointment comes on the heels of a proposal by Best Buy founder and ousted chairman Richard Schulze to acquire the brick-and-mortar retailer and take it private. Schulze, who already owns about 20 percent of Best Buy, has proposed paying between $24 and $26 per share in cash to the company to acquire the outstanding shares he doesn’t own — a premium of 36 percent to 47 percent on its Friday closing price of $17.64.

Schulze, who founded Best Buy in 1966 and served as the company’s CEO until 2002, gotcaught up in a scandal involving former CEO Brian Dunn earlier this year. A Best Buy investigation found that Dunn had engaged in an “extremely close personal relationship with a female employee that negatively impacted the work environment.”

After that relationship was discovered, Dunn was asked to resign as chairman. During its investigation, the audit committee found that Schulze had learned of the relationship but didn’t inform anyone, prompting the board to ask him to step down.

With more than 1,400 stores, the company has been struggling to compete with online retailers. For the previous fiscal year, the Richfield, Minn.-based company posted a loss of $1.2 billion for its last fiscal year, which ended March 31, compared with a $1.3 billion profit for the previous year.

via CNET

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Julian Sonny

From the sandy beaches of Hawaii, to the streets of New York: Julian has seen it all. His lifetime of travels has given him a broad scope of knowledge and an eclectic taste unlike any other in the tri-state area. Julian has often been compared to cultural icon, The Rock, because of his unequivocal work ethic and warrior-like stature.

More In News

World Sean Levinson

Men In Pakistan Make Curry Using Over 100 Dead Bodies They Dug Up

Pakistan has decided that 2014 is probably a good time to officially declare cannibalism a crime. The two proposed laws were inspired by brothers Mohammad Arif Ali, 35, and Mohammad Farman Ali, 30, who were found last April to have dug up over 100 dead bodies from a local graveyard to feast upon. Residents of […]

World John Haltiwanger

4 Reasons Why You Won’t Catch Ebola On The Subway

Ebola has now arrived in New York City, which has prompted fears about the potential of the disease to spread across the city. It’s understandable that this news would be frightening to people. After all, New York is the most populous city in the country, and Ebola is a foreign disease with no cure. Not […]

World Sean Levinson

High School Shooting In Washington Leaves Two Dead And Four Injured

A high school student fatally shot himself and one other student at a Washington school just north of Seattle this morning. Up to four others were injured, all of whom are students. Shots were reported to have been fired at Marysville-Pilchuck High School at around 10:45 am. The Seattle Times reports that the shooter, believed […]

World Sean Levinson

Cellist Eerily Plays A Duet With Her Own Brainwaves (Video)

Chicago Symphony Orchestra cellist Katinka Kleijn has composed a duet combining her cello with the sound her brainwaves make. She did this by way of an EPOC Neuroheadset, an electroencephalography (EEG) device containing 14 sensors that records the speed, volume and depth of her brain activity, the Chicago Reader reports. Sound engineer Ryan Ingebritsen and […]

World Emily Arata

You Can Now Buy A $2,000 UGG Rug That’s As Cozy As It Is Ridiculous

If you’re in the market for a new rug, look no further than UGG’s just-introduced home collection. The selection of luxury furnishings includes a $2,000 Classic Leather-Bound Rug made from “sumptuous” wool. In case the price doesn’t throw you off, the rug’s fine print mentions it can’t be exposed to sunlight or washed. Instead, this […]

Also On Elite

TV

Childhood Is Over: This Was The First Weekend Without Saturday Morning Cartoons

As a child, Saturday morning cartoons were my jam. I’d wake up at 6 am, bright-eyed and bushy-tailed, ready to get started on my marathon cartoon watching; it was a tradition. That’s what Saturday mornings were for (when, you know, we were too young to actually do anything fun). Alas, the era of animation is […]

Life

Why I’ll Make Sure My Child Knows It’s Okay To Be Flawed

As the mother of a now almost 2-month-old, I can’t pretend to know everything about motherhood. The majority of my time is spent in a constant state of mildly debilitating panic, praying to the procreating gods that I don’t contribute to anything other than my child’s profound happiness. As of right now, that simply means […]

Humor

Old Man Gives Performance Of A Lifetime At Karaoke Night (Video)

I once spent three nights in a row at a karaoke bar in Florida on spring break, and it was during that time when I first gained an appreciation for the unmatchable entertainment spectacle known as “old dudes singing.” They might not make up the majority of the crowd, but in my experience, there is […]