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.
- 1 Disney heiress Abigail disowns her share of family profits in West Bank company
- 2 The secret report that helps Israel hide facts
- 3 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 4 Ebola virus: UK health officials issue warning to doctors as experts admit the outbreak 'is not under control'
- 5 Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
Richard Dawkins says 'date rape is bad, stranger rape is worse' on Twitter
Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
Zayn Malik on Israel-Gaza: One Direction singer bombarded with Twitter death threats after posting #FreePalestine
MH17 crash: Black boxes show plane suffered 'massive explosive decompression' following shrapnel hit
The secret report that helps Israel hide facts
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£350 - £400 per annum + competitive: Orgtel: Project Manager (specializing in ...
£25000 per annum + OTE £40,000: SThree: Orgtel are seeking Graduate Trainee Re...
£45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...
£28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...