Struggling Retailer Best Buy to Lose Key Executive

Andrew Klips |

best buy closing stores, best buy loss, best buy closuresIn its latest executive shake-up, Best Buy Co. (BBY) reported that Chief Financial Officer Jim Muehlbauer is exiting his position at the end of the 2013 fiscal year (ending February 3, 2013) after 11 years of service at the big-box electronics retailer.  The company has already begun looking for a replacement.

A regulatory filing with the Securities and Exchange Commission shows that Muehlbauer, 50, will receive a $1.4 million payment as part of his separation benefits.

Best Buy has been fighting to maintain market share, nonetheless capture more, as online companies continue to offer more competitive pricing.



Earnings during the first two quarters this year have resulted in tighter margins and double-digit percentage declines, putting the company on a mission to become a turn-around story.

In August, Best Buy hired former Carlson Companies executive Hubert Joly as its chief executive, replacing former CEO Brian Dunn who left in April amidst a corporate probe of an alleged "improper relationship" with a 29-year-old female employee.  During August, Best Buy also suspending guidance for the year, citing lower sales expectations and uncertainty amongst product launches.

"Given the unique relationship between a CEO and CFO, it is not uncommon for a new CEO to bring in his own person," said Best Buy spokesman Matt Furman.

Last week, the Minneapolis, Minnesota-based company named Expedia executive Scott Durchslag as senior vice president and president of online and global e-commerce.

The company has been a prominent news topic as founder and former CEO Richard Schulze is performing due diligence in consideration of making an offer to take the embattled company private.  Schulze has suggested that he would be willing to pay between $24 and $26 per share for the 80 percent of the shares that he doesn't already own.   In total the deal would be worth about $11 billion.

Shares of BBY closed down by 0.39% in Tuesday trading at $17.84.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
PBI.P.B Pitney Bowes Inc 6.70% Notes Due 2043 22.78 0.46 2.06 162,341 Trade
BBY Best Buy Co. Inc. 56.35 0.52 0.93 4,153,970 Trade

Comments

Emerging Growth

Singlepoint Inc

SinglePoint Inc is a mobile technology company engaged in mobile payments, mobile giving, and mobile bidding. It operates mobile commerce and communications platform to accept mobile credit card payments.

Private Markets

iPRO Network, LLC

We provide the platform, tools, and resources to empower individuals and professionals to market desirable goods and services to the public, taking the place of traditional methods of commerce.

Voleo

Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…