Barnes & Noble Founder Leonard Riggio May Want To Buy Out The Bookstore Division
Barnes & Noble founder and chairman Leonard Riggio may want to buy out the bookstore company that he founded while still spinning out the Nook tablet division. Riggio owns 30% of Barnes & Noble stock and he has told the board of his interest. However the formal buyout process has not started yet according to sources with Bloomberg.
Barnes & Noble saw a decline in holiday-season retail sales, but Riggio’s plan would to still keep the 689 consumer bookstores open. The bookstores generated $996 million in revenues for the quarter ended in October. The collegiate unit of the company saw $773 million in sales for the quarter. The Nook division saw $160 million in sales for the quarter, which would become separated from the company.
The board has formed a special committee to examine the proposal if it is made. Evercore Partners would advise the panel. It is believed that Riggio is working with boutique investment bank Peter J. Solomon.