By Lisa Johnston
New products on display at the American International Toy Fair, held in N
Minneapolis — Best Buy has extended founder Dick Schulze’s deadline to submit a buyout bid to February.
Schulze’s previous deadline to present a formal acquisition proposal was this Sunday, after Best Buy’s board extended the original mid-November cutoff by one month.
The retailer’s board said the extension, to Feb. 28, was granted so that Schulze and his backers could include Best Buy’s holiday season and full-year results in their due diligence and acquisition offer.
This TWICE webinar, hosted by senior editor Alan Wolf, will take a look at what may be the hottest CE products at retail that will be sold during the all-important fourth quarter. Top technologies, market strategies and industry trends will be discussed with industry analysts and executives.
Maybe it is because we at TWICE are closing our Dec. 17 print edition today, which features our annual Retail Year-End Wrap Up, but we’d like to tip our cap to the Minneapolis Star Tribune for its coverage of Best Buy this year.
Yes, it is unusual for one media outlet to praise another, but the coverage the Star Tribune has done, and continues to do such as its report today on Dick Schulze’s impending bid on Best Buy, has been notable.
Minneapolis — Former Best Buy chairman Dick Schulze is expected to make a formal $5 billion to $6 billion bid this week to buy the company he founded.
According to a report in Best Buy’s hometown Minneapolis Star Tribune, Schulze has lined up financing from an assortment of bankers and private equity investors and will submit a formal proposal to the retailer’s board before a hard deadline this Sunday.
Mr. Hubert Joly
Dear Mr. Joly,
I know you are working hard to turn Best Buy around, and I hope you succeed. I’m a technology enthusiast and in the past have spent many hours and much money at Best Buy. But, as you well know, there is a lot that needs to change.
Minneapolis – Best Buy will have extended store hours through Dec. 27.
Locations are opening two hours earlier Monday through Saturday, at 8 a.m., and closing two hour later, at 11 p.m., excluding Christmas Eve.
Stores will also open two hours earlier on Sunday, at 9 a.m., and close three hours later, at 10 p.m., excluding the Sunday before Christmas.
In addition, the No. 1 CE chain will continue its weekly holiday price promotions. This week’s specials include a 32-inch, 720p Insignia LED TV and a 7-inch, 8GB Samsung Galaxy Tab 2 each for $200.
Minneapolis – Best Buy’s outgoing chief financial officer Jim Muehlbauer attributed the company’s 97 percent drop in third-quarter operating income to store closures and lower comp sales, but projected that the rate of decline would ease this period.
Minneapolis – Best Buy reported a $13 million loss from continuing operations for its fiscal third quarter.
That compares with net earnings from continuing operations of $173 million for the prior year’s fiscal third quarter.
Net sales slipped 3.5 percent to $10.8 billion for the three months, ended Nov. 3, and comp-store sales declined 4.3 percent.
Minneapolis – Best Buy has renewed its contract with the American International Group (AIG), which has been its exclusive provider of extended service plans under the Geek Squad brand.
The new multi-year agreement also extends to other services-related contracts sold through Best Buy’s multichannel distribution system in the U.S.
New York — Best Buy president/CEO Hubert Joly and two of his top lieutenants provided a frank assessment of the company’s shortfalls and an overview of its opportunities at his first formal meeting with the investment community here yesterday.
No detailed strategic game plan was presented at the event, which was intended instead to introduce the new management team to analysts and share its thinking about the company and the marketplace.