Deadline for Schulze Best Buy takeover offer passes
Friday, March 1, 2013 @ 12:19pm
The attempted buyout of Best Buy by founder Richard Schulze has failed. The deadline has passed for Schulze and his team of investors without a bid having been placed for the ailing electronics retailer, with the news of the failure coming at the same time as the fourth quarter results showed the company made a loss of $377 million for the period, continuing its current financial trend.
Revenues for the quarter reached $16.7 billion, up from the $16.67 billion from the same quarter last year. The loss of $377 million this year is also a year-on-year improvement, last year losing $405 million. Domestic revenues declined 0.3-percent to $12.55 billion, with the closure of 49 big box stores being blamed, though the 0.9-percent comparable store sales increase and revenue from 126 Best Buy Mobile stores helped fill the earnings gap. Online sales increased 11.2-percent, reaching a record $1.3 billion for the quarter.
International revenues increased by 2-percent to $4.16 billion compared to $4.09 billion last year. Changes in foreign currency exchange rates were given as the primary reason for the improvement, though it did offset a 6.6-percent decline in comparable store sales. Declining sales in Canada and China, caused through "overall industry softness" and increased competition from e-commerce in China, were offset by positive sales in European locations.
The offer of a buyout by Schulze was expected on or before February 28th, but there has been no word from a representative of Schulze or his investment team about the acquisition, valued at an estimated $11 billion. Best Buy released a statement confirming the passing deadline and lack of an offer, and will now "continue to focus on its transformation for the benefit of all of its stakeholders."