Best Buy CEO Brian Dunn resigned from the company amidst a major restructuring and a renewed focus on its mobile operations. Dunn will be replaced on an interim basis by Mike Mikan, a Best Buy board member, while the company looks for a permanent replacement.
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In a statement, Best Buy said that Dunn's departure was a "mutual agreement" and that there was no disagreement on "any matter relating to operations, financial controls, policies or procedures." Dunn will also step down from Best Buy's board.
Dunn started at Best Buy in 1985 as a VCR salesman and was named CEO in June 2009. Since then, however, despite strong smartphone sales, Best Buy has faced increasing competition from the likes of Walmart as well as online retailers like Amazon.
Last month Best Buy announced a major restructuring and it seemed like Dunn would be the one to lead Best Buy through the transition. The company said it would close 50 of its big box stores, cut 400 corporate jobs and save $800 million. At the same time, Best Buy said it would open another 100 Best Buy Mobile stores in the U.S. during its fiscal 2013. The retailer said it continues to expect to have a total of 600 to 800 such stores by fiscal 2016, up from 305 currently.
In November, Best Buy said it would buy Carphone Warehouse's 50 percent stake in their U.S. and Canadian Best Buy Mobile venture for $1.3 billion. Best Buy also reorganized its retailing efforts in Europe. At the same time, Best Buy said it and Carphone Warehouse would start a new retail venture aimed at emerging markets.
Mikan, who will remain on the board while serving as interim CEO, has been a Best Buy director since April 2008. He previously served as executive vice president and CFO of UnitedHealth Group Incorporated and CFO of Optum, a health care services company and affiliate of UnitedHealth.
For more:
- see this release
- see this WSJ article (sub. req.)
- see this Bloomberg article
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