Barnes & Noble ousts CEO after less than a year
Chain reeling from rise of e-books, online rivals
Barnes & Noble has ousted Chief Executive Officer Ron Boire after less than a year on the job, saying he wasn’t the right person to revamp a bookstore chain struggling to compete with Amazon.com.
Management duties will be handed over to founder Leonard Riggio, 75, and other executives while Barnes & Noble searches for a new CEO. Riggio will postpone his retirement as executive chairman, the New York-based company said.
The departure brings fresh upheaval to a chain reeling from the rise of e-books and online rivals. Boire, a former Sears Canada executive who became CEO in September 2015, had sought to revive growth by increasing the shelf space allotted to non-book merchandise like toys and games.
“The board of directors determined that Mr. Boire was not a good fit for the organization and that it was in the interest of all parties for him to leave the company,” Barnes & Noble said in a statement.
Boire has been working to turn the company’s stores into centers for customer experiences. That included a plan to open four new concept stores with restaurants attached.
Last year, Barnes & Noble spun off its college bookstore unit as a separate public concern. That left behind a company with 640 stores, an e-commerce site and an e-book unit — but no clear path to regaining its relevance. While sales at its locations have stopped declining, growth prospects are dim.
Amazon, meanwhile, is testing physical bookstores and may ultimately open hundreds of them. That’s bringing challenges on multiple fronts.
Boire began Barnes & Noble in 1965 with a single store that sold low-cost college textbooks. A string of acquisitions, including the purchase of B. Dalton, helped turned the company into the biggest U.S. bookstore chain.
But the shift of books and other media online took a heavy toll on the industry. Barnes & Noble shuttered stores, and chief rival Borders Group went bankrupt in 2011.