Brian Dunn has resigned as director and CEO of Best Buy. Dunn’s resignation came just two weeks after the electronics merchant announced plans to close 50 big box stores, open 100 Best Buy Mobile stores and grow its online business.
Though Dunn has “resigned,” a press release issued by Best Buy indicates Dunn was asked by the board to step down. The release states there was a “mutual agreement that it was time for new leadership to address the challenges that face the company.”
Board member G. Mike Mikan, who previously served as CFO at UnitedHealth Group and CEO of Optum, a UnitedHealth associate in the healthcare industry, has been named interim CEO.
Last Thursday, financial services company Standard & Poor’s downgraded Best Buy’s stock. In a statement, credit analyst Jayne Ross said the “restructuring of operations underscores the problems that Best Buy is having with its current business model.”
Best Buy’s online revenues grew 21% in its fiscal fourth-quarter, which ended March 3, and 18% for the year. In its 10-k, Best Buy projected online revenues to grow an additional 15% this fiscal year.