Barnes & Noble CEO Departs Amidst Nook Troubles; Expansion Plans Under Scrutiny
After Barnes & Noble announced the disastrous Nook business figures a few days ago and consequently declared that they would no longer produce any more tablets, they are now continuing to adjust course in other areas as well. Barnes & Noble CEO William Lynch is leaving the company. Outwardly, Lynch and the bookseller are parting on good terms, but in truth, the CEO’s contract was only extended by another two years in March 2013.
The rather sudden departure and the previously presented poor business figures suggest that Lynch was fired or was advised to leave. The two-year extension is therefore null and void. The former CEO is leaving Barnes & Noble with a substantial severance package in the form of a stock package, so the farewell might not be too painful.
Digital vs. Retail
Surprisingly, Barnes & Noble has not filled the CEO position anew. Instead, various executives within the company are taking on new roles to fill the gap and better separate the digital division from the retail division. A spin-off of the loss-making Nook business is still on the table. In the past, there have been multiple speculations that Microsoft might acquire the Nook division and the majority owner Leonard Riggio might acquire the retail business.
Given the new personnel structure, it will be interesting to see what other course corrections will follow. Specifically, there will probably be a close look at the ambitious expansion plans. According to Lynch, Barnes & Noble wanted to expand into 10 international markets this year. But with the CEO’s departure, those plans might now be re-evaluated.
The initial foreign operations of Barnes & Noble in the UK likely did not go as hoped. Even before the latest business figures were announced, the bookseller had already started selling Nook devices at reduced prices. This also naturally raises the question of whether a further massive expansion might be too much at this time. After all, markets like Germany or France differ even more from the American home market, which makes business expansion potentially more challenging than it was in the UK.
