Best Buy founder offers to buy company

The founder and former chairman of Best Buy on Monday offered to take full control of the struggling electronics retailer in a deal that values the firm at up to $8.84 billion. Richard Schulze, who owns about 20 percent of the big-box chain, proposed to buy the shares he does not already own at between $24 and $26 per share, representing a premium of up to 47 percent on Friday's closing price of $17.64. The global electronics chain, like other mortar-and-brick rivals, is struggling against competition from online retailers and plans to close 50 US stores by the end of 2012. Best Buy swung into loss in its fiscal 2012 year that ended March 3, losing $1.23 billion compared to a gain of $1.28 billion the previous year. Best Buy turned in a profitable first quarter that ended May 5, but revenue fell 2.1 percent as same-store sales -- sales at stores open at least a year -- fell 3.0 percent. Schulze stepped down as chairman in June after the losses, but suggested Monday he has a plan to turn the company around without pressure from minority shareholders. "There is no question that now is the moment of truth for Best Buy and that immediate and substantial changes are needed for the company to return to its market-leading ways," Schulze said in a statement. "It is my strong belief that Best Buy's best chance for renewed success is to implement with urgency the necessary changes as a private company." Schulze founded Best Buy in 1966 and served as its CEO and chairman until 2002, then continued as chairman until June. Best Buy shares had fallen 38 percent from their high over the past year at Friday's close, before rebounding sharply to $20.32 in morning trade Monday after Schulze's offer.