Best Buy CEO Brian Dunn resigns effective immediately

By on April 10, 2012, 2:00 PM

Best Buy has announced that Brian Dunn has resigned as CEO and director effective immediately.  Director G. Mike Mikan will serve as interim chief executive officer until a permanent replacement can be found.

In a prepared statement, the electronics retailer highlighted that there were no disagreements between the outgoing CEO and the company on any matter related to operations, financial controls, policies or procedures. There was a mutual agreement between both parties that it was time for a leadership change to address challenges that the company faces moving forward.

Dunn had no formal education in retail when he took a job as a sales associate with the company in 1985. From there he slowly worked his way up the chain of command as a manager, district manager then regional manager in 1996. Over the course of the next decade he continued his climb through the ranks and took over as CEO in June 2009.

Mikan has served as a Best Buy director since 2008 and was formerly the executive vice president and CFO of UnitedHealth Group.

Dunn's departure comes just after the company reported a fiscal fourth-quarter net loss of $1.7 billion, although this was largely due to Best Buy’s purchase of Carphone Warehouse’s stake in a joint mobile store venture.

In addition to the net loss report last month, the company also revealed that they would be closing 50 stores this year which would eliminate around 400 jobs as part of a restructuring program of sorts. If you remember, big-box retailer Circuit City ultimately suffered a similar fate in 2009 when they closed down their entire retail store operation and moved to an online-only format.

User Comments: 7

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RubinOnRye RubinOnRye said:

GLAD HE IS GONE..... I meant him once while working at Best Buy and he wasn't very nice unless a camera was on him and he really didn't listen to your suggestions even after him asking for them.

RubinOnRye RubinOnRye said:

Almost forgot, Best Buy really needs to change when it comes to hiring people who know what they are talking about rather then hiring friends because that is why Best Buy is going down hill. Customer service is key as is knowledge of product. Sorry but I refuse to buy from somebody who's only hiring quality was that he is friends with the Geek squad agent. I use to be proud to tell people I worked for Best Buy, now I have to defend myself when I tell people how I worked for Best Buy when they actually cared about customers and not just their pockets.

treetops treetops said:

Sigh I wanted to start off my computer repair\networking career at best buy but they seem to have some car salesmen like tactics and crazy prices compared to online retailers.

Guest said:

If you are like me who like to build PC gaming rigs.Dont go to bestbuy,they dont have many computer parts.Frys is the best for computers builders.

dms96960 said:

According to Bloomberg, Best Buy's board was investigating the ?personal conduct? of Dunn when he resigned after 28 years at the electronics retailer.

?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,? Claire Koeneman, a Best Buy spokeswoman who works for H+K Strategies, said today in an e-mailed statement. ?Prior to the completion of the investigation, Mr. Dunn chose to resign.?

Hmm. Always a story behind the story.

Ranger12 Ranger12 said:

"resigned effective immediately" always looks suspicious. I would bet something else is going on besides the fact that best buy doing poorly.

Nima304 said:

treetops said:

Sigh I wanted to start off my computer repair\networking career at best buy but they seem to have some car salesmen like tactics and crazy prices compared to online retailers.

I wanted to as well, but I wasn't friendly enough. My friend got the job, and always complains about the sales tactics he has to use.

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