Brian Dunn recently resigned from his director and CEO position at Best Buy Co., Inc. (NYSE:BBY). The company officially released a statement on Tuesday morning regarding the news. They also claimed that the decision was mutual and that the company’s interim CEO is now G. Mike Mikan. Here is the official press release statement:
The board of directors of Best Buy Co., Inc. (NYSE:BBY) today announced that Brian Dunn has resigned as chief executive officer and director. There were no disagreements between Mr. Dunn and the company on any matter relating to operations, financial controls, policies or procedures. There was mutual agreement that it was time for new leadership to address the challenges that face the company. Director G. Mike Mikan has been named interim CEO to lead the company while a search for a new CEO is underway. Richard Schulze, the founder of Best Buy, continues to serve as chairman.
“I have enjoyed every one of my 28 years with this company, and I leave it today in position for a strong future. I am proud of my fellow employees and I wish them the best,” said Dunn.
“We thank Brian Dunn for his many years of service to the company and wish him well in his next endeavors,” said Schulze. “As we move forward, we are very pleased to have a strong leader with Mike Mikan’s credentials as interim CEO.”
“The Best Buy team and I will be extremely focused on successfully managing this period of transition. I want to assure our employees, customers and other key stakeholders that we will work together to achieve our company’s growth and profitability goals,” said Mikan.
Mikan, who will remain on the board while serving as interim CEO, has been a Best Buy director since April 2008. He formerly served as executive vice president and chief financial officer of UnitedHealth Group Incorporated and chief executive officer of Optum, a health care services company and affiliate of UnitedHealth. Mikan has strong financial and operational expertise, as well as public company leadership experience.
A search committee of the board of directors has been created consisting of the founder and members of the nominating, corporate governance and policy committee. The committee will oversee the process for the identification and selection of the next CEO.
Dunn’s decision to leave the company had a positive impact on Best Buy’s shares, which increased 3.1% right after the report. Now shares are down close to 3%, as investors likely realize that Best Buy faces strong headwinds.
In the last year or so, Best Buy has been struggling to compete with online retailers like Amazon and iTunes. This has prompted their focus on abandoning the former big box store concept and specializing in smaller retail venues, like cell phone sales. The store’s ultimate goal was to cut $800 million of their costs
I enjoy shopping Best Buy stores and I hope they will leave some of their big box stores open for at least a little while. Don’t get me wrong, I love to purchase music and games off the internet but there are some things better purchased in a brick-and-mortar store.