Best Buy Founder Richard M. Schulze will step down as company chairman at the end of June following an investigation involving inappropriate behavior of the company’s former CEO Brian Dunn.
The company’s board had an audit committee, which was an outside law firm, investigate allegations that Dunn had been having an inappropriate relationship with a female employee in March, that was affecting the workplace. Dunn ended up resigning over the allegations.
“The CEO’s relationship with the female employee demonstrated extremely poor judgment and a lack of professionalism, but the inquiry revealed no misuse of Company resources,” Best Buy said at the time.
It was then found out that Schulze himself knew of the inappropriate relationship but did not report it to the audit committee.
In a statement released by Best Buy on the matter, they said that Schulze would be replaced as chairman by audit committee director Hatim Tyabji at the end of the company’s annual meeting on June 21.
Schulze will assume the role of chairman emeritus, an honorary position, according to the statement.
In 1966, Richard M. Schulze and business partner Gary Smoliak, opened Sound of Music, an audio specialty store, in Saint Paul, Minnesota. Through the early years, they acquired more Sound of Music stores until in 1983 the board approved a name change to Best Buy Co., when it opened its first superstore in Burnsville, Minnesota.