If you have a hard time remembering the last time you bought something from Best Buy, you're not alone. The company continued to leak money during the fourth quarter, which ended February 2nd and included the holiday shopping season. The bright spot is that it lost less money than it did over the same period last year. Best Buy lost $409 million during the fourth quarter, a significant improvement over the $1.82 billion it lost in the fourth quarter of the previous year.
There were rumblings that the founder of Best Buy, Richard Schulze, had offered to buy the company back for between $24 and $26 a share, even though shares today are worth approximately $16.45. He founded the electronics company in 1966 and was the CEO until 2002. Schulze still maintains a 20 percent stake in the company and has expressed concern about Best Buy's direction and was working with his investment group to take over the business.
Best Buy pushed back its call to investors to today, March 1st, which gave investors hope that a deal was near. Unfortunately, this was not the case. Instead, the call was pushed back to let the deadline for offers on Best Buy to expire, which is exactly what happened. The New York Times cites sources that said Schulze and his investors were not able to line up the "necessary debt and equity financing."
Best Buy remains in a state of turnaround, which considering the reduction of losses over last year seems to be working. We'll see what happens with the electronics giant.