Barnes & Noble’s stock surged by over 20% following the announcement that the board would explore the possibility of selling the struggling company. This decision came after an offer from the company’s largest shareholder and chairman, Len Riggio. Additionally, the board approved a poison pill strategy to prevent a hostile takeover if an unidentified shareholder were to accumulate 20% or more of the company’s stock.
This potential sale is just one part of Barnes & Noble’s turbulent journey in recent years. The company has faced challenges with its leadership, having replaced its fifth CEO in five years. The most recent CEO was fired due to violations of company policy, including allegations of sexual harassment and bullying. This led to a legal battle between the former CEO and Barnes & Noble.
Despite having over 600 stores and thousands of employees, Barnes & Noble has experienced a decline in sales over the past few years. The company has tried various strategies, such as smaller store formats and adding a kitchen concept, but these efforts have not been successful in attracting customers. Neil Saunders, a retail expert, believes that Barnes & Noble will need to close more stores in order to survive in the changing retail landscape.
While Barnes & Noble struggles, independent bookstores have been on the rise. The American Booksellers Association reported an increase in the number of independent bookstore locations, showing that there is still a demand for physical bookstores in the market.
As Barnes & Noble considers its future through a potential sale, it faces the challenge of adapting to the changing retail environment and competition from online retailers. The outcome of this exploration will have a significant impact on the company’s future and its place in the retail industry.