Best Buy founder steps down after probe

Best Buy's founder Richard Schulze is stepping down as chairman of the consumer-electronics chain after the company's investigation revealed that he failed to alert the board of directors that the CEO was having an inappropriate relationship with a female employee.

Best Buy said Monday that a probe it launched in March determined that former chief executive Brian Dunn, who resigned last month, violated company policy and showed poor judgment by having a "close personal relationship" with a subordinate.

The inquiry also found that Schulze, who first heard about the relationship in December when another employee gave him a written statement, acted inappropriately by not telling human resources or the company's board about allegations.

"I confronted him with the allegations [which he denied], told him his conduct was totally unacceptable and contrary to Best Buy's policies and everything I, and the company, stand for," Schulze said in a statement. "I understand and accept the findings."

Best Buy, which has more than 1,400 U.S. locations, is struggling to regain its footing as it faces increased competition from online retailers and discounters. On the news of the departure, shares closed up 28 cents at $19.56 Monday after earlier sinking to $19.02 -- the lowest they've been in more than three years.