Just when it appeared things were looking up for Barnes & Noble, Inc. (NYSE:BKS) stock, which is up more than 50% this year, here comes a shakeup at the very top.
Barnes & Noble’s board of directors announced Tuesday that Chief Executive Officer Ronald Boire was “not a good fit for the organization.” Consequently, Executive Chairman Leonard Riggio will postpone his retirement.
Boire served as CEO since July 2015, coming from an executive seat at Sears Canada and without any notable bookselling experience.
According to the press release issued by BKS, Boire’s exit is in the “best interests of all parties.” The hunt for a new CEO will begin immediately. In the meantime, Riggio and other BKS executives will assume Boire’s duties.
BKS stock traded just 1% lower on the news. However, we may have a different view of the market’s feelings on the matter when Wednesday rolls around.
As the largest peddler of books in the U.S., Barnes & Noble has been susceptible to competition from the likes of Amazon.com, Inc. (NASDAQ:AMZN), among others, as it tries to avoid the same fate as Borders Group, Inc., which closed its doors in 2011.
Sales at Barnes & Noble have flagged some 2% this year, and there’s just no telling if a change in leadership can keep BKS stock, which is down 60% over the past ten years, alive to see another decade.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.
