The board stated Wednesday it had appointed a particular committee to assessment provides. One got here from longtime Barnes & Noble chairman Len Riggio. He’s the corporate’s largest shareholder, controlling near 20%.
The poison capsule will kick in if the unidentified get together accumulates 20% of the inventory or extra. At that time, shareholders will likely be allowed to purchase Barnes & Noble’s inventory at a 50% low cost, diluting the worth of the shares.
The announcement comes shortly after one other investor disclosed a stake of near 7%, and stated he had held talks with Riggio about shopping for the corporate.
The board stated Riggio would vote his shares in favor of any transaction really useful by the committee.
The bookstore fired its most up-to-date CEO, Demos Parneros, in early July, citing unspecified violations of firm coverage. Barnes & Noble later revealed that claims of sexual harassment and bullying led to Parneros’ termination.
In August, Parneros sued his former employer in federal courtroom for defamation and for firing him with out trigger.
Barnes & Noble nonetheless has extra 600 shops and 23,000 staff. Final quarter, same-store gross sales dropped 6.1% in contrast with a 12 months in the past.
Neil Saunders, managing director of GlobalData Retail, stated in September that a lot of the shops “really feel drained, are too giant and too cluttered, and don’t provide the buyer any compelling cause to go to and purchase.”
He believes Barnes & Noble will shutter extra shops: “Barnes & Noble must slim down as a way to survive.”
Barnes & Noble’s issues come as native and impartial bookstores are resurgent.
The American Booksellers Affiliation, a commerce group, reported that the variety of impartial places rose 6% final 12 months to 2,470.