Richard Schulze, the founder of Best Buy Co., Inc.(NYSE:BBY) is approaching executives to help him out if he is successful in making the company private. J.D. Wilson, senior vice president of enterprise capabilities has already confirmed in an interview that he will work for the organization if the deal is sealed. Chief Executive Officer Brad Anderson has also been in talks to join the company after the deal goes through.
Schulze, 71, stepped down from his post of chairman and has been looking to taking the world’s largest electronics retailer private. There was also an allegation about then-CEO Brian Dunn having illicit relations with a female employee, which Schulze was unable to clarify. He had stated that he might sell his 20 % stake in the company. All information has been provided by spokespersons who have preferred to remain anonymous due to the delicate nature of the matter.
Get Free Trend Analysis on BBY
Shares of Best Buy have plummeted by 23% this year alone and it climbed to 1.7%to $18.06 at the close in New York after advancing as much as 5.9%. Anthony Chukumba, an analyst at BB&T Capital Markets has stated that while Richard Schulze would want to take the company private, it is unlikely after studying the figures. He would need to get around 1-2 billion from a private-equity firm and 7-8 billion. A takeover will be about 30 dollars per share, which puts the total at 11 billion including net doubt. Schulze is faced with a mammoth task of getting long-time investors to sell and persuade lenders too.
Although Schulze is in negotiations with a few trusted aides to come and join him again, a formal agreement has not been reached. Potential investors and private-equity funds are also being approached so that they can provide the capital needed for the venture.
The company has faced a huge loss of 1.23 million after customers shifted to Amazon.com, Inc.(NASDAQ:AMZN) and a variety of other online merchants. The loss was on revenue of 50.7 billion for the fiscal year that ended in March. This is its major loss since 1991 and reports state that same-store sales have also decreased.