Consumer electronics retailer Best Buy Co., Inc. (BBY: Quote) said Tuesday that Chief Executive Officer Brian Dunn has resigned from the position and as a director, effective immediately. He leaves the company after serving it for the past 28 years. The company said Director Mike Mikan will replace Dunn as the interim CEO, while it initiates a search for a new CEO.
Richfield, Minnesota-based Best Buy, which is also known as the 'big blue box' because of the prominent design on Best Buy stores, said, "There was mutual agreement that it was time for new leadership to address the challenges that face the company."
Mikan has been a director of the company since April 2008. He was also the Executive Vice President and Chief Financial Officer of UnitedHealth Group, Inc. (UNH: Quote) from November 2006 to January 2011, and the CEO of its health services business platform OptumHealth until July 2011.
Meanwhile, Dunn said, "I have enjoyed every one of my 28 years with this company, and I leave it today in position for a strong future."
Dunn is credited with driving the company's strategy to deliver superior product selection, services and customer experience. His contributions have led to steady improvements in Best Buy's market share growth and customer satisfaction levels.
Dunn was named CEO in 2009 after being president and chief operating officer since 2006, and executive vice president of U.S. Retail, president of Retail from 2004 to 2006.
Dunn started his Best Buy career as a sales associate in 1985. He was promoted to store manager in 1989, and then quickly moved ahead to regional manager, regional vice president, and senior vice president positions.
The move comes just over a week after Best Buy posted a massive $1.7 billion loss for the fourth quarter, hit by significant charges related to Carphone Warehouse. The retailer also said it will shutter 50 U.S. big box stores in fiscal 2013, while opening 100 more U.S. Best Buy Mobile small format stand-alone stores.
In Tuesday's regular trading session, BBY is currently trading at $21.80, down $0.85 or 3.77% on a volume of 15.66 million shares, after hitting a 52-week low of $21.61.
by RTT Staff Writer
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