Barnes & Noble for sale after plunge into red
Wednesday 04 August 2010
Barnes & Noble, the world's largest bookshop chain, put itself up for sale last night, in the latest sign of turmoil in the industry.
The company announced its decision to "evaluate strategic alternatives" after it plunged into the red and its shares collapsed to levels not seen since the mid-Nineties. Saddled with a large network of high-street stores, the company has struggled as customers have preferred to buy books online – and increasingly now in digital format.
Leonard Riggio, the founder, who is still chairman, said he supported the board decision to bring in Lazard, the investment bank, to consider the future, and would himself explore making a buy-out bid, if he can find financing. The Riggio family is the company's largest shareholder.
James McQuivey, analyst at the consulting firm Forrester, said the potential bid by Mr Riggio could signal that hard decisions needed to be made that would be more easily reached as a private company. "They might feel they want to buy the company back now and take it public later and reap the windfall," he said. "But there aren't a lot of investors who will be that certain about the probable outcome of that bet."
In-store sales were down 3 per cent in its most recent quarterly results. More readers have turned to digital books on devices like Amazon's Kindle and the Apple iPad, which are proving more popular than Barnes & Noble's own Nook electronic reader.
Shares soared 27 per cent in after-hours trading following the company's statement. The billionaire investor Ron Burkle has also shown interest in the company, boosting his stake in recent months and suing the bookseller for preventing him from buying a controlling interest.
Harry Potter actor suffered 'severe flu-like symptoms' on a flight from London to Orlando
Rap music mogul accused of running two men over in his truck
World cities ranked in terms of safety, food security and 'liveability'
First full-length look is finally here
"Oink! Oink! Hee hee hee!" First interview with the big-screen star
Biohacking group hopes technology will lead people to think about even more dystopian uses
The party's potential nominations read like a high school race for student body president
- 1 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 2 The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Baldness could soon be treated using stem cells, scientists hope
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Mia Khalifa: Pornhub star claims Drake sent her 'cringeworthy' naked photos on Instagram
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...