The new boss may not be the same as the old boss, but there will be plenty of old and familiar faces on Best Buy's board soon. The consumer electronics retailer announced that the chain's founder, Richard Schulze, is returning to the company as its chairman emeritus. Joining Mr. Schulze on the board are former Best Buy CEO Brad Anderson and former COO Al Lenzmeier.
Mr. Schulze resigned from Best Buy's board last June and then attempted to put together a takeover of the company that didn't pan out.
Hubert Joly, Best Buy CEO, said he was pleased to have Messrs. Schulze, Anderson and Lenzmeier return to company.
"His [Mr. Schulze's] passion, wisdom and insight are legendary, and I know I speak for all my colleagues when I say it was wonderful to see him come to our headquarters recently and engage with employees as he and I walked the halls," said Mr. Joly in a statement.
According to the Minneapolis Star Tribune, Mr. Joly "worked hard to court" Mr. Schulze even as he was seeking to retake the company.
"Over the past several months I have come to know and respect Hubert and have a high regard for the work he and his executive team are doing to revitalize Best Buy for the benefit of all shareholders," said Mr. Schulze in a statement. "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."
Analysts were split on what the return of Mr. Schulze would mean for Best Buy.
Frank Lombardi, a portfolio manager at Cubic Asset Management, told Reuters, "I don't think it's useful. Hopefully it's not detrimental to the business. But I think they will sort of stay somewhat passive for now and allow the business to be run by Joly."
Alan Rifkin, an analyst at Barclays, told Reuters he thought it would be a "huge morale boost" considering how popular Mr. Schulze was with Best Buy employees.
Morningstar analyst R.J. Hottovy told The Associated Press that he expected the new members to support Mr. Joly's "Renew Blue" initiative for turning Best Buy around. The five-point plan includes:
1. Reinvigorating the customer experience;
2. Attracting and promoting "transformational leaders;"
3. Working with vendors to drive innovation and value;
4. Increasing return on capital investments while cutting unproductive costs;
5. Promoting sustainability and providing access to technology for teenagers.
- Founder Richard Schulze Returns to Best Buy as Chairman Emeritus in Support of the Company's Renew Blue Transformation Efforts - Best Buy
- Founder Richard Schulze rejoins Best Buy as chairman emeritus - Star Tribune
- Best Buy founder Schulze rejoins as chairman emeritus - Reuters/Chicago Tribune
- Ex-chairman Schulze returns to Best Buy - The Associated Press/USA Today
- Best Buy CEO Joly outlines turnaround plans for struggling retailer - Minneapolis/St. Paul Business Journal