BestBuy Co. BBY -2.42% founder Richard Schulze is returning to the company as chairman emeritus, a few weeks after the big-box retailer ended talks over a deal in which Mr. Schulze and a group of buyout firms were proposing to take a minority stake in Best Buy in exchange for three seats on the board.
BestBuy on Monday said Mr. Schulze has nominated two of his long-time colleagues, Brad Anderson and Al Lenzmeier, as board members and they will join the board, effective immediately. The two candidates will stand for election at the annual shareholder meeting in June.
“My dedication to the company that I founded and love is unwavering and, together with Hubert and the board, I determined that the best way to support Best Buy would be to return in support of the initiatives underway,” Mr. Schulze said in a statement.
For his part, Chief Executive Hubert Joly said he was “delighted” by Mr. Schulze’s return, adding that his “passion, wisdom and insight are legendary.”
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
Mr. Schulze, who founded the company in 1966 and remains its biggest shareholder with a roughly 20% stake, in December received an extension from Best Buy to give him more time to come up with the bank financing to make an offer that shareholders would be likely to consider, according to people familiar with the discussions.
Mr. Schulze’s push for control came as Best Buy continues to struggle to keep up with changes in consumer electronics as the weight of its big-box format inhibits it from fending off the competitive pressure of online retailers such as Amazon.com Inc.AMZN +1.92% Best Buy, based in Richfield, Minn., has become a particularly acute example of a phenomenon known as “showrooming,” where bargain-hunting shoppers browse stores then buy the products cheaper online.
Earlier this month, Best Buy reported its fiscal fourth-quarter loss narrowed sharply as it recorded fewer one-time charges, although core earnings dropped as same-store sales declined.