Business

Best Buy founder resigns as chairman, intends to explore options for 20 percent stake in company

RICHFIELD, Minn. — Best Buy Co. founder and largest individual shareholder Richard Schulze resigned as chairman and a director and said he intends to explore options for his 20.1-percent stake, a move that could make the electronics retailer a takeover candidate.

“I continue to believe in Best Buy and its future — and care deeply about its customers, employees and shareholders,” Schulze said in a statement Thursday. “There is an urgent need for Best Buy to reinvigorate growth by reconnecting with today’s customers and building pathways to the next generation of consumers.”

Schulze’s comments come as Best Buy shares have faced pressure amid a scandal and probe that found former Chief Executive Brian Dunn engaged in an “extremely close personal relationship” with a subordinate that “negatively impacted the work environment,” according to the company’s board.

Schulze notified the board Thursday morning of his decision to resign, the company said.

The stock is off 20 percent this year and fell 5.5 percent to $18.85 in late morning trading. Its market value was $6.81 billion as of Wednesday’s market close.

Schulze, 71, was Best Buy’s chief executive for 36 years, until 2002. Since then, he has continued to serve as chairman and director and is the company’s largest shareholder. He had previously planned to step down as chairman after the company’s annual meeting on June 21 and remain as director for another year.

The company had tapped Hatim A. Tyabji to replace him as chairman and accelerated his appointment Thursday. Tyabji is currently chairman of the audit committee and has been a director since 1998.

An internal probe found Schulze didn’t alert other directors that Dunn was allegedly having an inappropriate relationship with the female employee. The investigation found no evidence that Dunn misused company assets.

Dunn, 51, resigned in April after the board began probing his conduct. He couldn’t be immediately located for comment.