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Entries in Brian Dunn (4)

Monday
May142012

Best Buy Founder to Step Down After CEO Probe

KAREN BLEIER/AFP/Getty Images(NEW YORK) -- Best Buy founder Richard Schulze will step down from his role as the company’s chairman after an investigation found that he “acted inappropriately” by failing to inform the company’s audit committee of “personal conduct allegations” involving former CEO Brian Dunn and a female employee.

Schulze will be replaced by current director and audit committee chair Hatim Tyabji on June 21.

The company made the announcement on Monday.

When Dunn stepped down from his role of chief executive officer earlier this year, his resignation was first thought to be a result of the company’s financial woes.

But it was later revealed that the company had launched a probe into a relationship Dunn kept with a fellow employee that the company now says violated company policy and “negatively impacted the work environment.”

“The CEO violated Company policy by engaging in an extremely close personal relationship with a female employee that negatively impacted the work environment,” Best Buy said Monday in announcing the investigation’s findings.

“The CEO's relationship with the female employee demonstrated extremely poor judgment and a lack of professionalism, but the inquiry revealed no misuse of Company resources,” the company said.

Best Buy contracted law firm WilmerHale to conduct the investigation on its behalf.

Copyright 2012 ABC News Radio

Sunday
Apr152012

Best Buy Releases Store Locations Closure List

Karen Bleier/AFP/Getty Images)(NEW YORK) -- Best Buy on Saturday announced the locations of the remaining 42 stores slated for closure as part of the electronic retailer’s plan to cut costs.

Last month, the company announced plans to shut down 50 stores following a $1.7 billion loss for its fourth quarter that ended March 3.

To date, the company has shut down two locations — a store in Kansas City, Mo., and another in Scottsdale, Ariz., in February.

Later this year, five stores in the Twin Cities area and one in San Antonio will also shut their doors.

To see a complete list of store locations closing, click here.

“This was not an easy decision to make. We chose these stores carefully, and are working to ensure the impact to our employees will be as minimal as possible, while serving all customers in a convenient and satisfying way. But we also recognize the impact this news has on the people who deserve respect for the contributions they have made to our business,” company officials said in a news release.

The company said it anticipates the majority of the stores will close permanently by May 12 and by the summer.

However, Best Buy Mobile stores will continue to remain open.

Along with the store closures, Best Buy planned to cut about 400 jobs in its corporate and support areas as part of the company’s goal to achieve $800 million in cost reductions by fiscal year 2015.

With the closures, Best Buy says it plans on focusing on increasing “points of presence, while decreasing overall square footage, for increased flexibility — including key store remodels with a new Connected Store format, while continuing to build out the successful Best Buy Mobile small format stores throughout the U.S.”

The announcement comes after Best Buy CEO Brian Dunn resigned this week amid a personal conduct probe.

Copyright 2012 ABC News Radio

Friday
Apr132012

Best Buy Female Employee-CEO Details Emerge

Denis Doyle/Bloomberg via Getty Images(NEW YORK) -- New details have emerged about the female employee with whom Best Buy CEO Brian Dunn reportedly had an “inappropriate relationship,” according to The Wall Street Journal.

The unnamed woman, reported to be 29, worked in a leadership training institute at the company’s headquarters in Richfield, Minn. Best Buy declined to comment to the Journal whether she was still employed, or to detail her exact duties. She also declined to comment to the Journal.

The newspaper reported that a person close to her said the incidents that led to complaints to the board were “something small that people blew out of proportion.”

The Minneapolis Star Tribune first reported that Dunn’s departure was related to whether he misused company resources in an “inappropriate relationship.” The company announced it was probing an undisclosed “personal conduct” matter late Tuesday. That was after the company first announced Dunn’s resignation by “mutual agreement” earlier that day.

In a 28-year career at Best Buy Co., Dunn, 51, rose up from the sales floor to become CEO. He was the third CEO of the company in 2009 after joining the electronics retailer in the 80s, never having graduated from college.  Dunn’s wife was often by his side at public events, the Wall Street Journal reported. The two have three sons.

The Star Tribune reported that was being investigated by the board of directors for the use of company resources to carry out an inappropriate relationship.

“We’re not commenting on any details of investigation,” a spokesperson for the board told ABC News. “The investigation is ongoing. We just don’t have any additional comment at this time. The board findings will be made public and appropriate action will be made at the time if warranted.”

The findings from the board are expected to be released within the next few weeks, a source told ABC News.

In the first statement early Tuesday, the company wrote, “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.”

Later on Tuesday, the company said, “Certain issues were brought to the board’s attention regarding Mr. Dunn’s personal conduct, unrelated to the company’s operations or financial controls, and an audit committee investigation was initiated. Prior to the completion of the investigation, Mr. Dunn chose to resign.”

News of the resignation came while the company suffers from tight competition from other electronics retailers like Amazon and Apple.

In late March, Best Buy announced restructuring plans after weak quarterly results. Interim Chief Executive G. Mike Mikan wrote in an email to employees that there has not been an interruption in the plan, the Wall Street Journal reported, which includes trimming 50 of its 1,100 stores, adding smaller stores focused on mobile phones and laying off another 400 employees to cut costs.

“I know the news of Brian’s departure was a surprise, and that the shift in focus of the news coverage later in the day likely raised additional questions for many of you,” Mikan wrote in the email. “I’m very aware that was difficult to read and experience.”

Copyright 2012 ABC News Radio

Thursday
Apr122012

Best Buy Ex-CEO Reportedly Probed Over Female Staffer

Denis Doyle/Bloomberg via Getty Images(MINNEAPOLIS) -- An “inappropriate relationship” with a woman employee was behind the abrupt departure of Best Buy CEO Brian Dunn,  the Star Tribune reported, citing a source close to the company.

The newspaper said that, Dunn, who is married, was being investigated by the board of directors for the use of company resources to carry out an inappropriate relationship.  On Tuesday night, Best Buy said that Dunn stepped down before the conclusion of an investigation involving “personal conduct,” but no further details have been provided.

“We’re not commenting on any details of investigation,” a spokesperson for the board told ABC News. “The investigation is ongoing. We just don’t have any additional comment at this time. The board findings will be made public and appropriate action will be made at the time if warranted.”

The findings from the board are expected to be released within the next few weeks, a source told ABC News.

Dunn had a 28-year career at Best Buy Co., rising up from the sales floor to CEO before his abrupt resignation on Tuesday.

The news of a personal probe sent shock waves through the business community.  Early on Tuesday, the company reported Dunn’s decision to step down was a “mutual agreement.” Only later did they disclose the probe.

The investigation was first reported by The Star Tribune of Minneapolis.

The departure of the company’s CEO comes at a time when it’s suffering as online competitors such as Amazon take a bite out of profit. In March, Best Buy announced restructuring plans after weak quarterly results. The chain made plans to trim 50 of its 1,100 stores and lay off another 400 employees to cut costs.

Copyright 2012 ABC News Radio







ABC News Radio