A new report has surfaced that the departure of Best Buy CEO Brian Dunn may not have been a result of the weak financial state of the company after all.
It was announced on Tuesday that Brian Dunn was stepping down from the role of CEO at Best Buy after 28 years with the company, three of which had found him in the top spot. The natural assumption was that this was related to the recent financial difficulties the company was facing that was resulting in the closure of 50 locations. According to a new report from the Minneapolis Star-Tribune, however, it seems there may have been another reason.
It has been revealed that the Best Buy Board of Directors has launched an investigation into allegations Dunn was having an inappropriate relationship with a female subordinate at the company. According to the report, Dunn is also being accused of having used company funds to carry out the relationship. The Star-Tribune reached out to Best Buy for comment repeatedly, and the company declined each time. When the newspaper asked if Best Buy would like to refute the claims it was making, the company offered no comment. Greg Hitt of H+K Strategies, speaking on behalf of Best Buy, told the newspaper, “As we have said, the investigation is ongoing. We have no additional comment at this time.”
Speaking as recently as last month, Dunn spoke about his intentions to stick with the company through the upcoming restructuring it was entering to try to reverse its recent declines. His departure from the company earlier this week took many by surprise, but it was believed to just be related to the financial issues as company decisions on these types of matters are known to change suddenly.
Mike Mikan will serve as the interim CEO until a qualified replacement can be found. Rumors are already circulating that multiple candidates are being looked into.
Correction: We have corrected the company employing Greg Hitt in the third paragraph.