Best Buy has announced that Hubert Joly, the former head of hospitality and travel company Carlson, will take over as permanent CEO effective September 2012. Joly will replace interim chief G. Mike Mikan who has held the position since April when former CEO Brian Dunn resigned following an investigation into a personal relationship he had with a female employee.
This will be Joly’s first job working in retail despite having significant experience in the technology, media and services industries. He has been credited with turning around French business EDS from 1996 through 1999 and helping restructure Vivendi’s video game business from 1999 until 2001. Most recently, Joly has worked in the customer service industry as the head of Carlson, the company that operates Radisson hotels and T.G.I. Friday’s restaurants.
Shares in Best Buy have fallen 11 percent since Dunn’s exit earlier this year and have since dropped another 10 percent following the appointment of Joly earlier today. Reuters notes that the naming of a new CEO was overshadowed by the breakdown of takeover talks involving founder Richard Schulze over the weekend.
On Sunday, Best Buy said they had offered Schulze a proposal that would have allowed him to do due diligence and bring a buyout offer directly to shareholders. The company said he declined to participate in the offer.
Meanwhile, the founder said he was shocked at the abrupt termination of talks and had expected to wrap up a deal before the company reported quarterly earnings later this week.