Business & Tech
Middletown Best Buy to Close
The big box store is the only location in Rhode Island on the list released Saturday.
Best Buy of Middletown will shut its doors.
The company announced Saturday that the West Main Road location is one of 50 locations on a list of planned company closures. Best Buy announced in March that it would close 50 locations and on Saturday announced the remaining 42 on that list.
The company said in a news release that employees were notified Saturday morning.
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“This was not an easy decision to make,” Best Buy said in the release. “We chose these stores carefully, and are working to ensure the impact to our employees will be as minimal as possible, while serving all customers in a convenient and satisfying way. But we also recognize the impact this news has on the people who deserve respect for the contributions they have made to our business.”
The company said it will be working to help affected employees find other positions inside Best Buy.
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“If they don’t find new positions, or if they choose not to work at a different location, a transition including severance packages will be available,” the company said.
Best Buy said three of the 42 locations remained open Saturday; the rest are closed Saturday, and will reopen Sunday, April 15.
“Customers currently doing business with these stores are being contacted [Saturday],” the company said.
“We expect most of these stores will permanently close by May 12. Three additional locations are expected to permanently close later this summer.”
The news comes after the company, based in Richfield, MN, released its fiscal year fourth-quarter earnings, showing a $1.7 billion loss in revenue. In addition, the Global Post reported the company aims to open 50 stores in China by 2013.
The news of closures and downed profits are not a surprise to many, as Best Buy reported shortfalls after its third quarter in 2011 as well.
In January 2012, and also suggested it was getting closer and closer to bankruptcy every day.
Going forward, Best Buy's retail store strategy is to increase points of presence, while decreasing overall square footage.
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