NEW YORK - The founder and outgoing chairman of Best Buy is resigning from the board and may sell off his 20.1 percent stake in the beleaguered electronic retailer.
It's the latest news to hit the Minneapolis company facing increasing competition from online retailers and a CEO scandal.
Richard Schulze, 71, has been with the company since its inception in 1966 and is its largest shareholder. He told the Best Buy board Thursday that his resignation is effective immediately.
Schulze initially announced in May that he would step down on June 21 at the company's annual meeting after an investigation found he knew that the then-CEO was having an inappropriate relationship with a female staffer.
The board of directors of Best Buy Co. quickly announced the appointment of Hatim A. Tyabji to replace Schulze as chairman of the Company. Tyabji, currently Chairman of the Audit Committee, has served as a director since 1998.
Shares of Best Buy Inc. slid 5 percent, or 98 cents, to $18.95 in early trading.
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