Things aren’t looking too good for retail giant Bestbuy. Word is to stay afloat Bestbuy may have to do a buyout. With options like Amazon and Walmart, Bestbuy seems to be fading in the mist.
Today the company said profit in the third quarter ended Nov. 3 was 3 cents a share, excluding some items, falling short of the average analyst estimate of 12 cents, according to data compiled by Bloomberg. Best Buy also reduced its forecast for free cash flow for the year to at least $850 million, from a previous minimum of $1.25 billion.
Best Buy’s finances have deteriorated so much in recent months that some of the private-equity funds have gone back to their investment committees to warn them of the changes, said another person involved in the process. Amy von Walter, a spokeswoman for Richfield, Minnesota-based Best Buy, declined to comment. A spokesman for Schulze didn’t return a call or e-mail seeking comment.