We reported to you earlier that Best Buy Co. Inc. will be closing 50 big box stores and eliminating 400 positions. At that point the electronics retailer had yet to announce what locations would be closing. Today TG Daily released counts of how many stores will be closed by state.
The decision to close its doors is part of Best Buy’s plan to reduce costs by about $800 million and adjust to a changing marketplace by reducing the size of their stores; the retailer will now focus on establishing businesses with less overhead like the 100 smaller Best Buy Mobile stores they will be opening across the country.
Two of the stores have already closed and another location in Puerto Rico will also cease to be.
Best Buy CEO Brian Dunn resigned abruptly amid what the company described as a board probe into his personal conduct. Dunn’s alleged range of offenses include lying and cheating.
Dunn worked his way up in the company over three decades; he started out as a sales clerk and never attended college. His humble beginnings and considerable success were considered exemplary and even proof that people can achieve considerable economic mobility in America.
Best Buy Director G. Mike Mikan will be taking over as interim CEO during the search for a new CEO. Richard Schulze, the founder of Best Buy, continues to serve as chairman.
Should we be leery of the CEO that is lauded as a hero?