This could be one situation even the Geek Squad has no fix for.
Best Buy shares dropped to their lowest price in a decade yesterday on worries that buyout talks with founder Richard Schulze are faltering.
That’s despite reports late in the trading day that the 71-year-old is still exploring a bid for the struggling electronics chain and will likely seek a 30-day extension to conduct due diligence.
Nevertheless, it remains unclear whether Schulze has corralled the private-equity investors he needs to complete the $8 billion deal. Most recently, Schulze has been in talks with TPG, Apollo Management and Leonard Green Partners, according to reports.
The stock — which has shed more than 40 percent of its value this year as the Richfield, Minn., company has been slammed by competition from Amazon and brick-and-mortar discount chains — lost 9.8 percent yesterday, to close at $13.75.
This week, CEO Hubert Joly — a former hotel-and-restaurant exec who was tapped this fall to overhaul the retailer — outlined a turnaround plan that includes loading up on private label brands, possibly by acquiring companies like JVC and Hitachi.
But a Citigroup analyst yesterday said Joly’s initiatives may not be enough to fend off competition.
Schulze, who was booted from Best Buy’s board this summer in the wake of a scandal over an improper relationship between former CEO Brian Dunn and a female employee, offered in August to take Best Buy private for $24 to $26 a share.
But with Best Buy’s stock in free fall, sources said any potential buyout is now likely to get done at a lower price.
The retailer is slated to report third-quarter results on Tuesday.