Hotel Chief To Rescue Best Buy
Best Buy, the consumer electronics retailer, decided to bring in a hotel guy as its new CEO. Hubert Joly, the Frenchman is all set to head the new company now but his former expertise as the head of restaurant and the hospitality company, Carlson has left many of their share holders clucking their tongues in dismay.
The retailer company isn’t really bothered with Joly’s experience in the hospitality industry though. The company is undergoing a crisis caused by flailing sales margins which led to the closure of several of its stores in the recent times. Hubert, on the other hand, as gained renown as te guy who can turn around the fortunes of a declining business. Electronic Data Systems and Vivendi Universal were a couple of companies that he ran with an iron fist before they were taken over by HP.
Hatim Tyabji, the Best Buy board chairman is all praise for Joly and cannot stop extolling his virtues at present. “Hubert’s range and depth of experience in transforming companies is exactly what the company needs at the moment, as is his energetic, imaginative, and experienced leadership in executing strategies,” was what Tyabji said swung the vote in his favor.
When Will Hubert Take Charge
Joly is expected to take over next month once his visa formalities are complete. Richard Schulze, the erstwhile CEO had been toying with the idea of taking the company private. Watching Joly cope with this enormous decision would be interesting indeed!
The stock holders of Best Buy aren’t too pleased about a hotelier taking over though. Their hesitation and displeasure was reflected in the sharp drop in stock prices which dipped to $18.90.
The drama quotient is bound to go up as the tussle between the board and its former CEO, Schulze continues. Adding Hubert Joly might only serve to aggravate the situation instead of dousing the fire. But the hospitality expert Joly might just be able to whet the public’s appetite for all things electronics yet again thereby turning around the company’s fortunes.
We wish Hubert Joly the best and fervently hope that Best Buy’s gain wouldn’t turn out to be hospitality industry’s loss in the long run.
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