The board stated Wednesday it had appointed a particular committee to evaluate 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 celebration accumulates 20% of the inventory or extra. At that time, shareholders might 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 helpful 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 court docket 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 yr in the past.
Neil Saunders, managing director of GlobalData Retail, stated in September that many of the shops “really feel drained, are too giant and too cluttered, and don’t provide the patron any compelling purpose to go to and purchase.”
He believes Barnes & Noble will shutter extra shops: “Barnes & Noble must slim down with a purpose to survive.”
Barnes & Noble’s issues come as native and unbiased bookstores are resurgent.
The American Booksellers Affiliation, a commerce group, reported that the variety of unbiased areas rose 6% final yr to 2,470.