Best Buy founder and major shareholder Richard Schulze resigns

Best Buy has been facing some serious problems over the last year. It lost CEO Brian Dunn this year and it has been closing stores in an effort to shore up operations and return the profits it once enjoyed. Best Buy and other major electronics retailers are having a hard time with stiff competition from online retailers and other physical retailers such as Walmart who have stepped into the electronics segment in force.

Best Buy took another blow this week as founder and largest shareholder Richard Schulze resigned as chairman and director of the company. Schulze also noted that he was exploring options for its 20% stake in Best Buy. Schulze owns 69 million shares of Best Buy valued at $1.36 billion.

If he chooses to put the shares on the market, Best Buy could become a target for takeover. Schulze was expected to step down as chairman in June 21 and then leave the Board of Directors in 2013. That stemmed from an investigation that found he had known of an alleged affair between former CEO Brian Dunn and a 29-year-old female subordinate and had not notified other board members. Best Buy named board member Hatim Tyabji as its new chairman.

[via WSJ]