Best Buy investigates former CEO Brian Dunn over alleged inappropriate relationship with female employee

The board of embattled retailer Best Buy is investigating claims that its former chief executive Brian Dunn, who resigned Tuesday, had an inappropriate relationship with a female employee, according to the Star Tribune.

The newspaper, citing a source close to the big box chain, said Best Buy was probing multiple allegations that Dunn had behaved inappropriately with a staff member.

The company declined to comment on the investigation and Dunn could not be reached for comment, the newspaper said.

Dunn, who had worked for Best Buy for 28 years and was CEO since 2009, resigned Tuesday after the company announced an investigation into his "personal conduct".

Bloomberg, citing a person familiar with the matter, confirmed the board had launched the probe amid fears Dunn's behavior threatened the company.

 "As we have said, the investigation is ongoing. We have no additional comment at this time," Greg Hitt of Public Strategies Inc., who is acting as a spokesman for Best Buy, said Wednesday.

Adding to the company's woes, investment bank Canaccord Genuity said Best Buy may have lost market share for the first time in a decade as online retailers, such as Amazon, lured customers away from its brick-and-mortar locations, CNET reported.

Canaccord Genuity analyst Laura Champine said in a report published Thursday that she expected Best Buy's revenue and earnings growth to continue to slow through 2012 after the company's market share started to head south in November.

Analysts have tipped a number of candidates to replace Dunn, including former Best Buy executive and current Advance Auto Parts CEO Darren Jackson, former Williams-Sonoma chief financial officer Sharon McCollam and former RadioShack CEO Julian Day, the Star Tribune said.