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

Malaysia Airlines Made The Worst Mistake Ever By Launching A ‘Bucket List’ Competition

Malaysia Airlines managed to make a complete fool out of itself while simultaneously terrifying potential customers in its latest marketing tactic. According to Time, the world’s unluckiest airline launched a competition in Australia and New Zealand last week giving away free economy-class tickets and iPads. The competition was called “My Ultimate Bucket List,” and contestants […]

Also On Elite

World

This Redditor Shares The Tale Of The Time His Family Found His Fleshlight

While the road to sexual maturity is often awkward, one Reddit user’s tale of being caught with a sex toy is more embarrassing than most. Reddit contributor DannySwish1 shared a story about the time he purchased a Fleshlight masturbator online. His sister opened the box, thinking that it was a pair of shoes she had […]

Life

Could Grad School Be The Answer To An Early Mid-Life Crisis?

Joining the real world after graduating from college is a milestone for every young adult. It’s a bittersweet time filled with both fear and excitement, but a lot of times college graduates find themselves in a pickle of either not finding a job or working a job that they hate. Then, they sit there and […]

Humor

Apparently Verne ‘Mini Me’ Troyer Is A Very Big Fan Of Shark Week (Photo)

“Shark Week” officially began on Sunday, kicking off a week of dramatic reality television promising plenty of shark-generated carnage that will make all your insufferable friends take to social media to complain about how Discovery has gone downhill. I look at “Shark Week” the same way I look at Senate filibusters — it might have […]