Founder Leonard Riggio of Barnes & Noble Inc. halted plans to bid for the bookstore chain's retail businesses despite the company's widening losses. The suspended plan also caused the company's shares to decline.
Last February, Riggio announced plans to make an offer to acquire Barnes & Noble's retail businesses. The latter included around 680 stores and the company website. Leonard Riggio is the company's biggest shareholder and current chairman. The bookstore chain posted a huge loss in the first quarter. The loss was even bigger than what analysts had forecasted. A continuing decline was also experienced in the company's other unit, Nook.
In a statement issued by the New York-based company today, the net loss in the quarter ended July 27 was USD87 million. This was bigger compared to losses last year, which was USD39.8 million.
Barnes & Noble Inc. tried to move away from its retail chains and shift to digital content. This was done through its Nook brand of e-readers and tablets. However, the success only thrived two years and took a step down during the holidays. This resulted to forced discounts on its devices that caused accelerated losses.
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