Best Buy Closing 50 Stores; Cortlandt Is Spared

CORTLANDT, N.Y. – Best Buy announced Monday that 50 stores nationwide will be shuttered, but locations in Cortlandt, Hartsdale and Yonkers will be spared.

The only store set to close in New York is in Manhattan. Best Buy has closed two stores already this year, in Kansas City, Mo., and Scottsdale, Ariz., and has notified five stores they will close later this year. Most of the remaining 42 stores are expected to close permanently by May 12.

In addition to store closings, debt ratings agency Fitch downgraded the company’s outlook from “stable” to “negative,” also on Monday.

In a press release regarding Best Buy’s negative outlook, the ratings agency wrote that “reengineering of (Best Buy’s) operations to take excess costs out of the system, will prove to be insufficient to offset the pressures facing its business. The departure of Best Buy's CEO adds an additional element of uncertainty surrounding the company's management team and future operating strategy.”

“The revision in the Outlook to Negative reflects the potential for an accelerating shift in consumer electronics sales to the online channel,” the ratings agency said. Fitch noted that the company still has strong free cash flow and liquidity.

A statement on Best Buy's website said, “This was not an easy decision to make. 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.”

The company’s website said employees displaced by the closings could possibly transition to other locations or would be offered a severance package.

Click here to follow Daily Voice Cortlandt and receive free news updates.