On April 14, 2012, Best Buy officially posted a news release on “The BBY,” a special public relations focused website they have dedicated to “all the news from the brands and operations worldwide of Best Buy Co., Inc.” The news release stated that Best Buy will be closing down 50 stores nationwide by the end of 2012. It is scary to think that the economy has taken such a hard hit even on big brand-name retail chains such as Best Buy. Additionally, the company is also on the hunt for a new Chief Executive Officer.
Best Buy actually announced that they would be closing down 50 stores nationwide back in March. However, they did not reveal many details. Two stores have been closed down already, and six others were notified of their closing date. Now, Best Buy has confirmed and released an official list of all the 50 stores that will be closing down. They are expecting all of the stores to be officially closed down by the end of the summer. By closing these stores down, Best Buy is projecting that they will be able to save approximately $250 million for their 2013 fiscal year and $800 million in costs by 2015. Some states, such as Kansas and Rhode Island, will not suffer an impact as negative and big as some other states, such as California and Minnesota. Regardless, many employees will have to be laid off.
The employees that will be affected by this change have already been notified. According to Best Buy’s news release, they will try their best to aid the people that have been laid off. They are going to try to accommodate them for their inconvenience by trying to offer them a position within the company but in a different location. If they choose to not accept another position for whatever reason, or have trouble finding a new job, Best Buy is willing to offer them a severance package. This is their way of showing concern for their employees as the company undergoes a vast organizational change. They are also contacting their customers in order to see how they can make matters easier for them throughout the changes.
The announcement of Best Buy closing down 50 stores was followed by another announcement by the Bets Buy Board of Directors. They mentioned they have launched a search for a new CEO, a process that could potentially take anywhere from six to nine months. After the resignation of Brian Dunn on April 10, the board appointed Mike Mikan as the new interim CEO. The Wall Street Journal hinted that the board may currently be exploring the situation, as it is believed that Brian Dunn may have misused company assets. It will be interesting to see where this situation will be headed and, according to Best Buy’s news release, they will definitely try to keep everyone posted anytime they have more details to share.