Faced with declining sales of its Nook e-readers, Barnes & Noble (BKS) is changing CEOs.
On Monday, the struggling bookseller announced that William Lynch had resigned, effective immediately. Lynch, which became CEO three years ago, had put the company’s Nook division at the center of its business strategy. However, when Nook sales tanked during the last quarter, the company began to reassess its plans, Reuters notes.
In addition to Lynch’s departure, company founder and Chairman Leonard Riggio indicated that there would be additional changes to Barnes & Noble’s executive team.
Microsoft (MSFT) acquired a 17% stake in the ailing book chain’s Nook division last year. Microsoft has been rumored to be interested in acquiring the entire Nook business.
Faced with intense competition from tablets from Apple (AAPL), Google (GOOG) and Amazon (AMZN), Barnes & Noble had recently indicated that it would stop manufacturing the color Nook tablet on its own.
Barnes & Noble had been moving to separate the Nook division from its retail store business. Riggio has previously indicated plans to acquire the retail operations.
Shares of Barnes & Noble in climbed almost 1% Tuesday morning trading.