Business

Barnes & Noble chief is resigning

NEW YORK — Barnes & Noble Inc. on Monday said that William Lynch is resigning as chief executive after three years on the job.

The New York-based book retailer, which has been struggling with declining sales and widening losses, also said it is reviewing its strategic plan and will provide an update when appropriate.

Barnes & Noble named Michael Huseby as president of the company and chief executive of its Nook Media unit and promoted controller Allen Lindstrom to the post of chief financial officer.

Advertisement

The management changes come just weeks after Barnes & Noble posted a wider net loss and said sales plunged in the three months ended April 30, with revenue at stores open at least a year dropping 8.8 percent. Overall retail sales, which include Barnes & Noble bookstores and online sales, declined 10 percent, in part because of store closings.

Get Talking Points in your inbox:
An afternoon recap of the day’s most important business news, delivered weekdays.
Thank you for signing up! Sign up for more newsletters here

Moreover, the company said it would stop making its own Nook color touchscreen tablets because they failed to keep up with competitors.

Barnes & Noble had been pouring money into developing its Nook devices to keep up with changing reading habits and beat back competition from retailers such as Amazon.com.

The company said it will continue to make its more basic black-and-white e-readers, but farm out the tablet manufacturing to a third party.

The about-face troubled investors, who sent the shares down sharply. The stock has recovered a bit since then, closing Monday at $17.66. The stock slipped about 3.3 percent in after-hours trading.