Competitors were also pushing aggressive financing plans, and Good Guys was slow to respond. A week later, the company said Gunst would resign effective June 30. No replacement has been named. Gunst has been CEO since 1993. He will continue as a director.
Some new blood is called for since the company itself now looks directionless.
The stock price reflects those worries. Its Redondo Beach Expo, the first to be remodeled, showed improved first year sales but flat second year sales. In a joint venture with Tower Records, the company also operates five WOW multimedia stores. The video category has increased slightly in recent years as home office has declined. A turnaround requires that a company deliver change and in some predictable fashion.