Quantcast
Latest Stories

Barnes & Noble CEO William Lynch resigns



William Lynch AP FILE PHOTO

NEW YORK — Barnes & Noble Inc. said Monday that William Lynch has stepped down as CEO, effective immediately, just weeks after the book retailer announced weak sales, big losses and the declining popularity of its Nook e-readers.

Lynch’s resignation comes after just three years in the role. No successor was named, but the New York-based company said that it is reviewing its strategic plan and will provide an update “when appropriate.” Shares fell nearly 5 percent in after-hours trading on the news.

In the wake of his departure, Chief Financial Officer Michael Huseby will become president of the company and CEO of its Nook Media unit. Controller Allen Lindstrom will succeed Huseby as CFO. Huseby and Mitchell Klipper, CEO of Barnes & Noble Retail Group, will report directly to Leonard Riggio, the company’s chairman and largest shareholder with a nearly 30 percent stake.

Riggio declined an interview through a company spokeswoman.

The news didn’t surprise some analysts.

“The board lost confidence in Lynch. Investors lost confidence,” Belus Capital Markets analyst Brian Sozzi said Monday. He said that Lynch didn’t have a definitive plan at the last earnings call, after Barnes & Noble posted a larger quarterly loss and said sales plunged in the three months ended April 30. Revenue at stores open at least a year dropped 8.8 percent and overall retail sales, which include Barnes & Noble bookstores and online sales, tumbled 10 percent, in part because of store closings.

Moreover, the company announced that it would stop making its own Nook color touchscreen tablets because they failed to keep up with competitors.

Barnes & Noble has been struggling to find its place as more readers have shifted to electronic books and competition has grown from discount stores and online competitors. The company, which has 675 bookstores in 50 states and 686 college bookstores, has been trying to avoid the fate of its former rival Borders Group, which did not adapt to the growing threat of the Internet and e-books and went out of business in 2011.

So, Barnes & Noble had been pouring money into developing its Nook devices to keep up with changing reading habits and beat back competition from retailers such as Amazon.com Inc., which makes the popular Kindle readers, and Apple Inc.’s iPad.

The company hired Lynch from the home shopping network HSN Inc. as president of its online business in February 2009. There, he expanded the company’s digital offerings and helped launch the Nook. Lynch, who had worked as an executive at Palm Inc., became CEO of Barnes & Noble in March 2010.

Last month, the company said it was going to continue to make its more basic, black-and-white e-readers, but will farm out the tablet manufacturing to a third-party. Lynch hadn’t offered specifics of how a tablet partnership would work, but said at the time that the company was in discussions with “a lot of interested parties.” Some speculated that Microsoft Corp., which has a 6.8 percent stake in the Nook unit, could offer to buy it outright.

The bad results troubled investors, who sent the shares down sharply. The stock had recovered a bit since then, closing Monday at $17.66.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Barnes & Noble , Business , News , William Lynch

  • Weder-Weder Lang

    B&N CEO William Lynch resigns.

    More like forced to resign… Meanwhile, the revolving door for CEOs keeps revolving. With the steady progress of digitization, books and media will never be the same again. The industry has yet to find a new and sustainable business model.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Napoles tags over 100 officials in pork scam – Lacson
  • Vitangcol to sue Czech envoy
  • Senator’s kickback from pork bigger than those of Enrile, Estrada, Revilla – Lacson
  • 43 out of 414 Etihad passengers yet to be found, tested for MERS-CoV – Palace
  • Sandigan junks Marcos family claim to Paoay property
  • Sports

  • Caguioa blasts ‘no heart, soft’ Ginebra on Twitter
  • San Mig Coffee grinds out win over Alaska to force decider
  • UP nips St. Benilde; Adamson blasts RTU in Filoil women’s caging
  • Kevin Garnett responds to Raptors’ GM F word
  • Albert Pujols hits 500th HR of major league career
  • Lifestyle

  • Entering the monkhood a rite of passage
  • Haneda International Airport: A destination on its own
  • Wanted: Beauty queen with a heart that beats for the environment
  • Kim Atienza: At home with art and design
  • Life lessons I want to teach my son
  • Entertainment

  • Bollywood Oscars, film stars come to Florida
  • Ex-Fox exec denies allegations in sex abuse suit
  • Kris Aquino backtracks, says Herbert Bautista and her are ‘best friends’
  • Summer preview: Chris Pratt enters a new ‘Galaxy’
  • Bon Jovi helps open low-income housing in US
  • Business

  • SM to rebuild Tacloban hospital
  • PSEi slips after 4-day rally
  • Toyota sells 2.58 million vehicles, outselling GM
  • McDonald’s 1Q profit slips as US sales decline
  • SEC approves SM’s P15B retail bond offer
  • Technology

  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Opinion

  • One-dimensional diplomacy: A cost-benefit analysis of Manila’s security deal with Washington
  • No ordinary illness
  • Reforest mountains with fire trees and their kind
  • Day of the Earth
  • When will Chinese firm deliver new coaches?
  • Global Nation

  • 19 Ukrainians, Russians, Filipinas rescued in bar raid
  • Filipinos coming home from Mideast must obtain MERS clearance – DOH
  • US Secret Service in Manila ahead of Obama visit
  • Palace thanks Estrada for successful HK mission
  • Hong Kong accepts PH apology; sanctions also lifted
  • Marketplace