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More Trouble For Best Buy As CEO Resigns

By:
04/10/2021 01:38 PM ET

After an announcement last week that consumer-electronics retailer Best Buy was laying off employees and closing 50 stores, the company’s CEO Brian Dunn has resigned in what is said to be a mutual agreement.

The company released a statement announcing that effective immediately board member Mike Mikan will be acting as the interim CEO, while the company searches out a new leader, which has already begun.

Dunn, 50, had worked for Best Buy for 28 years, starting as a store associate who sold VCRs and he became the CEO in 2009. He said upon the announcement of his departure, “I leave today in position for a strong future.”

Best Buy has been struggling as of late due to the 2008 down turn in the economy and rising competition from better internet deals. Even with huge price cuts and free shipping deals sales at the stores have continued to drop.

One analyst, Michael Pachter of Wedbush Securities summed it up by placing blame for the companies recent downfall’s squarely on Dunn’s shoulders.

“I hate to be rude, but I think he (Dunn) was doing a terrible job. This is a company that had a sales guy in charge, and I just don’t think they are well positioned to deal with the onslaught from the Internet,” said Pachter.

“They have a big disadvantage to the Internet retailers because they have a big cost structure. So they need a guy who can fix that rather than trying to sell more stuff.”

“Best Buy needs to bring in a CEO who embraces change to do battle with the likes of Amazon,” Brian Sozzi, an independent analyst in New York, said to Bloomberg. “The world of consumer electronics retailing five years out is online, online, online.”

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