6 Signs Best Buy May Be Headed for Bankruptcy

If you want to keep more money in your wallet, Best Buy can be an excellent place to get deals on electronics, video games, and other technology. But shoppers in some areas may have more trouble finding a nearby location than they're used to — and the retailer may be in even deeper trouble than it’s letting on.

Last March, Best Buy CEO Corie Barry announced that Best Buy would be closing 17 stores across the country. She also noted that this is not unusual — Best Buy typically closes 15 to 20 traditional large-format stores in any given year as part of the company’s normal lease review process. 

Still, a few signs point toward troubled waters for the technology retailer. 

Best Buy has also recently carried out layoffs and job restructurings, in addition to pulling back on various fronts: 

Best Buy has exited physical media sales, retreated from the Samsung authorized repair program, and has even begun to use generative AI for customer troubleshooting and order support.

Barry noted that Best Buy sales are increasingly moving online instead of customers buying products at retail locations. Barry said that 33% of its 2023 revenue came from online sales compared to 19% in fiscal year 2020.

Here are some of the cities where Best Buy is closing locations.

In March, Best Buy shuttered its location in Shakopee. 

The retailer also closed a location in Blaine, Minnesota. However, that store was slated to reopen as an outlet store which may help local buyers keep more money in their bank accounts.

Another Best Buy location in the state of Tennessee — in Hixton, near Chattanooga — also closed.

In a statement, the company said, “The decision to close a store is never an easy one, and we are so grateful for our Hixson-area customers who have shopped with us over the years.”

The 20,000-square-foot store was open for 17 years at that location before Best Buy decided to close it.

Pro tip: If you are shopping at Best Buy or any other retailer, consider using one of the top credit cards that can get you cash back or other perks.

Best Buy’s store in Farragut — a suburb of Knoxville, Tennessee — closed its doors in March.

Knoxville news station WATE reported that a sign on the shuttered store read “It’s not goodbye, it’s see you around,” on the front door. Shelves inside were already empty.

Best Buy also closed a location in St. Joseph, Missouri, close to the Kansas/Missouri border.

In a statement, Best Buy reminded customers that they could get items from the retailer on BestBuy.com or with the Best Buy app.

California saw the closure of its Best Buy location in Temecula.

The news came after Best Buy shut down its store in another California city — Riverbank — last year. That location closed its doors on Oct. 29.

Best Buy shut down a location at the Stone Hill Town Center in Pflugerville, Texas, in March as part of the company’s downsizing.

A representative noted that although Best Buy was closing its location in the Austin suburb, shoppers still have the option to visit other nearby locations.

Pro tip: If your Best Buy store is closing you may want to buy more online with Amazon. Consider these Amazon hacks to maximize your savings at the retailer.

Algonquin, outside of Chicago, shut down its Best Buy location in early March.

The 31,000-square-foot Best Buy retail space had been in that location since 2007.

Best Buy can be a good option if you are on a tight budget and want to avoid throwing money away on electronic purchases. 

So, if your favorite Best Buy location has closed, remember that you can use the company’s website instead of its brick-and-mortar stores.

Just remember to check different online retailers and compare prices so you find the best deal on the product you need.