Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
Best Buy eliminates a layer of senior management.
Best Buy Co. is once again shuffling the ranks of its top management and streamlining its organizational structure. But the retail chain is not promising any short-term improvement in financial results.
In his first major announcement since taking over the top spot in August, CEO Hubert Joly has reorganized Best Buy, No. 11 in the 2012 Internet Retailer Top 500 around two channels and three business groups.
Stephen Gillett, who was named president of Best Buy digital and global marketing and strategy business services in March will continue to oversee the online channel, while Shawn Score, senior vice president and general manager of the connectivity business group, will be in charge of U.S. retail operations. Score’s new title is senior vice president in charge of U.S. retail.
Best Buy now will be organized into three business groups. The connectivity group will be headed up by Jude Buckley, currently the group’s chief operating officer, while the home group and services group will be led by Mike Mohan and George Sherman, respectively. Mohan is senior vice president and general manager of the home business group and Sherman is senior vice president and general manager of the services group.
As a result of the new changes, the current president of Best Buy's U.S. business, Mike Vitelli, will retire from the company at the end of the fiscal year on Dec. 31 and executive vice president of U.S. operations Tim Sheehan will leave the company effective Oct. 31.
The new management structure goes into effect on Jan 1., Joly says. “One thing I have learned in helping turn companies around is that a business needs to have a nimble organization,” Joly says. “Our new organization will help build a closer connection to our customers and front-line employees, as well as accelerate our transformation.”
Even with the new organizational and management changes, Best Buy is telling Wall Street analysts that the company’s third quarter earnings, scheduled to be released on Nov. 20, will be weaker than expected. Best Buy didn’t release a range for overall sales and profits, but did say comparable-store sales would fall from 3.2% to 5.3%.
“Comparable-store sales are expected to decline at a rate consistent with the range of results for the first two quarters of fiscal 2013,” the retailer says.