Best Buy's corporate credit rating put on watch by Standard & Poor's for possible downgrade, one week after electronics retailer announced restructuring plan
Cindy Allen
NEW YORK
,
April 4, 2012
(Associated Press)
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Credit ratings agency Standard & Poor's on Wednesday put its corporate credit rating and other ratings on electronics retailer Best Buy Co. on watch for a possible downgrade.
The move comes a week after Best Buy announced a restructuring plan. The chain plans to close 50 of its U.S. big box stores, open 100 small format stores and cut $800 million in costs over the next five years.
Best Buy is trying to become nimbler to avoid the fate of former rival Circuit City, which filed for bankruptcy protection in 2008. Traditional electronics retailers are suffering as more people buy gadgets online or at discount stores.
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