Best Buy is Leaking Board Members
Best Buy has announced through an SEC filing that two long-standing Best Buy board members have jumped ship.
G. Mike Milkan has vacated the Best Buy board on his way to becoming president of ESL Investments. Milkan was named interim CEO of Best Buy last year, after former CEO Brian Dunn resigned his position amid a sex scandal.
Matthew Paull, a Best Buy board member since 2008, has also resigned from the Best Buy board, and will officially leave in April. Paull’s departure is related to Best Buy board rules that require members to retire under certain conditions.
Though the Reuters report indicated that neither Paull or Milkan resigned due to disagreements with Best Buy management, their departure does leave four empty seats on the Best Buy board.
2012 was a difficult year for Best Buy. It’s big-box stores saw their revenue decline and the Dunn scandal marred the company’s management and board. The company’s second quarter earnings report showed a 90% drop in year-over-year profit. Much of its competition now comes courtesy of Amazon and other online retailers.
Despite these difficulties, Best Buy tried its best to keep from ending up as another Circuit City. The company closed 50 of its big-box U.S. stores and has opened smaller stores focused on selling mobile devices. It has also laid off a considerable portion of its workforce and rolled out a price-matching offer during the 2012 holiday season. Currently, Best Buy founder Richard Schulze is looking to buy back the company.