More Resignations From Best Buy’s Board

Best Buy Going Through Hard Times

Two board members of Best Buy Company announced their resignation from the struggling company’s board. The announcement comes within only seven months of the departure of Best Buy’s founder from the board.

The resignation of the two, which includes a former chief executive, will leave Best Buy’s 11-member board with four empty seats.

The company has been facing hard times as consumers use the electronic consumer goods stores as showrooms, and then go home and make their preferred purchases on-line.
The company said that G. Mike Mikan, who had served as the interim CEO from April to September 2012 had resigned from the board, effective immediately. Mikan was enlisted to fill in for the former head Brian Dunn who was forced to resign after having an inappropriate relationship with a woman employee.

Mikan will now become the president of ESL Investments, a hedge fund founded by billionaire Edward Lampert.

"Mike's background fits with our strategy and he will be a great asset to me and to ESL's portfolio companies," Lampert said in a statement on Monday.

The second departure will be when Matthew Paull retires in April, 2013 after serving on Best Buy’s board since 2008.

Paull and Mikan have not indicated that their resignations are related in any way to any disputes they may be having with the company’s management.

The fourth vacancy on the board goes back to last June when Rogelio Rebolledo was required to retire from the board due to his compliance with the rules of the company’s retirement policy.

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