Struggling big-box retailer Best Buy (NYSE:BBY) has named Hubert Joly as its new CEO and president after ending buyout talks with its co-founder and former Chairman Richard Schulze.
Joly, who previously helmed international hotel and resort operator Carlson, will assume his new title in September, the Associated Press noted. He succeeds interim CEO Mike Mikan, a board member, who has run Best Buy since April.
Investor confidence was not boosted by the news. Shares of Best Buy dropped more than 7% in Monday morning trading.
The new CEO comes in the wake of an ongoing leadership soap opera at Best Buy. In April, CEO Brian Dunn abruptly resigned due to an inappropriate relationship with a female employee. About a month later, Schulze was forced to step down after the company learned that he knew about Dunn’s conduct, but failed to inform the board.
This month, Schulze launched an $8.84 billion takeover bid for the electronics and appliance retailer. On Sunday, Schulze did not accept a company proposal to do due diligence, putting the bid at a standstill.
Faced with increased competition from discount online retailers and the internal office drama, Best Buy is trying to restructure operations, closing 50 stores, cutting 1,800 employees and looking to trim expenses by $800 million.
Analysts say Joly is known as a turnaround expert who’s brought in to implement course corrections and then departs. But his plans for Best Buy won’t become known for months.