At the time filing BK on November 10,2008..Court filings revealed that the company had assets of $3.4 billion and debt of $2.32 billion. BBY, from data listed from March 02,2012 balance sheet: $16B in assets and $12B in liabilities. A decrease of $1.8B in assets from YOY. Point: People think your balance sheet needs to go RED before BK, not so.
Main reason that BBY is doomed, in my opinion: Yes, Amazon part of the systematic problem for retailers that carry massive amounts of overhead (stores) and can't compete. Apple stores kicking BBY's behind too.
Back to online... Warranty service an issue? No problem.. I can take any of my products purchased on-line to any local authorized facility. Returns? Never had a problem with any Amazon purchase. They shipped it for free and I saved taxes. If on rare occasion you need to return an item, within 30 days, box and label shipped to you and UPS pick it up. No Hassles. They even accept returns beyond 30 days on certain items with small restocking fee...People are becoming more and more educated and shopping on-line..And yes, indeed, BBY is a popular place to browse before you get your best deal on your desired item.
Don't forget Wal*Mart and other general merchandise stores chipping away at their sales too... I have always personally enjoyed shopping at BB before online retailers took over. Never had a problem with them (except once when they were being Aholes regarding backing up their free replacement if they could not fix the item). The question is, is there room for a single brick and mortar electronics store? I guess time will tell.
Have you seen the movie "Meet Joe Black"? This Best Buy corporate drama is a close scenario.
Life imitating art.
BTW- My grandmother had a saying too.
"There is gelt and there is shmuck. Without gelt you are..."
Granny ran with a bawdy bunch -- much to the dismay of gramps.
Computer City? Toast. MicroAge? Toast. CompUSA? Toast. Circuit City? Toast.
Anyone see a pattern here?
Best Buy destroys it's competitors.
I think Circuit City was being less than honest w/ the books.... for all of 2007... Circuit City reported a minor lost of only $8.3 mill... but then the losses started happening in significant amounts.... as an illustrative example, for qtr ending 5/31/08, CC reported a loss of $164.8 million. The vast majority of CC’s $3.6 bill of assets were items that could be easily misstated, e.g., merchandise, property plant & equip, goodwill & other non-cash items... CC went from solidly profitable to bankrupt in a blink of an eye... which just doesn’t happen too often & highly unlikely to happen to BBY.
Wrap your mind around >$3B/yr in cash flow. You could pay off the LBO debt within a few years.
$100 M/yr in CEO pay is a rounding error. As a private company, the CEO can take whatever the debt holders agree to. Given his knowledge of the company, Schulze could write his own ticket.
And, if Schulze could actually turn BBY around in a few years and take BBY public again, he would have earned $100 mil/yr and more.
agree 100% and have to point out the best part about shopping online (for anything, just not electronics) - not having to deal with the throngs of troglodytes who think that shopping is an "activity" not just a necessity to obtain a good which you need to perform some function in your life. Point, click, pay and you can get on with your day. Who wants to waste hours driving to a location, browsing, talking to uninformed sales staff, waiting in line, then having to drive back to wherever you originated from to pick up anything.
BBY needs to shutter stores and become an online presence else its years are numbered like CompUSA and Circuit City.