Best Buy To Investigate Personal Conduct Of Its CEO

Consumer electronics company Best Buy Co said that its board has initiated an investigation on claims of misconduct against Chief Executive Officer Corie Barry after the retailer received an anonymous letter.

Best Buy didn’t want to disclose the contents of the letter, however, the company’s representative said that they “encourage the letter’s author to come forward and be part of that confidential process.”

In the letter to the board, dated Dec. 7, the author alleged that Barry had developed a romantic relationship that lasted years, with former Best Buy senior official Karl Sanft.

Barry and Sanft joined Best Buy over 20 years ago. Barry became the senior vice president in the finance business in 2013 and CEO in June last year, and Sanft was senior vice president of sales business until March 2019.

Mr Sanft is currently the CEO of California-based 24 Hour Fitness.

The Minnesota-based retailer said on Friday the audit commission has selected the law firm Sidley Austin LLP to investigate the allegations against Barry.

This is not the first time that one of the Best Buy executives faces allegations of misconduct. In 2012, the former Chief Executive Brian Dunn resigned during an inquiry into claims of personal misconduct.

Critics said that during Dunn’s term in office, Best Buy became a showroom for other online retail companies such as Amazon.com, with customers visiting Best Buy stores to look at different technology products and then ordering them elsewhere for less money.

Not long after that, Best Buy removed its chairman at the time, Richard Schulze, after it was found that he didn’t alert the board that Dunn had an inappropriate relationship with a female employee.