Business news

Best Buy founder quits as chairman


NEW YORK — Best Buy’s founder Richard Schulze is stepping down as chairman of the beleaguered consumer-electronics chain after the company’s investigation revealed that he failed to alert the board of directors when he learned 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 CEO Brian Dunn, who resigned last month, violated company policy and showed poor judgment by having a “close personal relationship” with a subordinate.

Filing could help firm repay bailout

DETROIT — The U.S. government is hoping that Monday’s bankruptcy filing by Ally Financial Inc.’s troubled mortgage business will help the company repay its government bailout faster.

Residential Capital LLC, or ResCap, filed for Chapter 11 bankruptcy protection in New York, unable to make payments on debt taken out to finance soured home mortgages. The filing will separate the money-losing ResCap subsidiary from Ally’s auto loan and banking businesses, allowing the latter businesses to grow and speed up repayment of Ally’s bailout from 2008 and 2009, Ally said in a statement.

Losses by Groupon small, revenue up

NEW YORK — Online deals company Groupon Inc. posted a smaller net loss and sharply higher revenue for its fiscal first quarter, helped by a growing customer base boosting demand.

Its revenue surpassed Wall Street’s expectations and Groupon’s stock shot up 17 percent after hours. The newly public company’s stock has been battered after a series of financial missteps.

Groupon said Monday that its net loss was $11.7 million, or 2 cents per share, in January through March. It lost $146.5 million, or 48 cents per share, in the first quarter of 2011, when it was still privately held.