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Deadline for Best Buy Founder to Acquire Company Expires

The company said its moving forward with "transforming" the company.

Richfield-based Best Buy is staying a public company for now, and is still working on digging itself out of a rough financial hole.

The deadline for founder Dick Schulze to make an offer to purchase the company expired Feb. 28.

"The company received no such offer and will continue to focus on its transformation for the benefit of all of its stakeholders," Best Buy said in a statement.

Schulze, who stepped down as board chair in June 2012, announced his desire to buy back the company and take it private last summer. Schulze stepped down as chair after an investigation found he failed to alert the board of allegations that former CEO Brian Dunn had an inappropriate relationship with a 29-year-old female staffer.

According to Bloomberg, an unnamed source said Schulze could make one last ditch effort to make an offer, but it's unlikely. The New York Times cited Schulze's inability to line up the necessary debt and equity financing as the deal killer.

As for continuing the company's transformation, Best Buy announced it was cutting 400 corporate jobs on Tuesday, Feb. 26. CEO Hubert Joly said this was the first phase of the $725 million cost-cutting plan announced last fall. The company's work-from-home progam was also eliminated, giving way to Joly's all-hands-on-deck approach.

In addition, the company announced its fourth-quarter earnings March 1, which showed the company was still losing money but making good progress.

According to the Pioneer Press, the fourth quarter beat Wall Street estimates and recorded the first quarterly rise in U.S. same-store sales in nearly three years. Currently, shares of Best Buy are up about 40 percent in 2013.

Richfield Patch will continue to cover the local company in the coming months.

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Burned ByBB March 08, 2013 at 06:44 AM
This whole run-up (the attempted buy-out and stock run-up) is a show so that someone can sell with a little less tail stuck between their legs. There'll be an investigation by the kind folks at the SEC when this house of cards finally ends up as a game of 52-pickup. Best Buy has continually failed on many fronts: Not following their corporate-stated guidelines at the local level (which could be there as lip-service only, like price matching), alienation of its dwindling client base through poor treatment of its customers in store, online and on their toll-free telephone lines and not carrying a diverse-enough line to appeal to the impulse buyers. At this point, their failure is inevitable. Why? Because the well has been poisoned, the name is mud among those (like myself) who have to buy computers, HDTVs, networking and video/camera gear as part of our business. A recent failure to price match their own website for me in-store cost them $2,200 in sales that week and another $9,000 in a proposal I have won. That's just one guy in Southern California!!! Plus, Fry's is willing to offer discounting with a smile when I buy four 50" LCDs at a time. Try that with a Best Buy manager and you get stammering and a failure to commit on the spot. Due dilligence bids are all they are good for, and that's a joke too. Good bye Best Buy

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