Best Buy Co., Inc. (NYSE:BBY) announced the return of its founder and former chairman Richard Schulze to serve as chairman emeritus to support the company’s efforts to improve its profitability.
According to the company, Schulze also nominated Brad Anderson and Al Lenzmeier to serve as the board of directors as part of their agreement.
Schulze previously considered to buy out the shares of Best Buy Co., Inc. (NYSE:BBY) along with a consortium of private equity firms including Cerberus Capital Management LP, TPG Capital LP, Apollo Global Management LLC (NYSE:APO) and Leonard Green & Partners LP. The board of directors of the company allowed Schulze to conduct due diligence last August and gave him a deadline to make an offer.
Early this month, Best Buy announced that Schulze did not submit a proposal to buyout the company after the deadline. Schulze agreed to a standstill agreement with the company and accepted two board seats.
In a statement today, Schulze said, “Over the past several months, I have come to know and respect Hubert, and have a high regard for the work he and his executive team are doing to revitalize Best Buy for the benefit of all stakeholders. My dedication to the company that I founded and love is unwavering and, together with Hubert and the Board, I determined that the best way to support Best Buy would be to return in support of the initiatives underway.”
Best Buy Co., Inc. (NYSE:BBY) hired Hubert Joly as president and chief executive officer in August last year, to turn around the company. Joly is known as a turnaround expert for media, technology and service companies.
In addition, Schulze expressed his confidence to Anderson and Al Lenzmeier whom he described as long-time colleagues who helped build Best Buy, and he expects his two nominees to add great value to the company in their role as directors of the board.
On the other hand, Joly said, “I am delighted our Founder, Dick Schulze, is returning to the company as its Chairman Emeritus. His passion, wisdom and insight are legendary, and I know I speak for all my colleagues when I say it was wonderful to see him come to our headquarters recently and engage with employees as he and I walked the halls. I look forward to his engagement as we move forward. I am also delighted to have Brad and Al join our Board and to have the company benefit from their experience and wisdom.”
Schulze is the largest shareholder of Best Buy Co., Inc. (NYSE:BBY) with 20 percent stake in the company. He left the company in June after the company’s investigation found out that he was aware of the inappropriate relationship of then-CEO Brian Dunn with a female employee.