The Herald Bulletin

Morning Update

Breaking News

February 25, 2013

Barnes & Noble chair wants to buy retail business

(Continued)

NEW YORK —

Barnes & Noble bookstores, though, have been profitable even though they're facing falling sales. The company has broadened its offerings in stores and sells more high-margin games, educational toys and other non-book items to improve results.

In its fiscal second recent quarter ended Oct. 27, earnings before interest, taxes, depreciation and amortization in the retail segment — which includes the stores and the Web site that Riggio wants to buy — doubled to $28 million, helped by selling higher margin products. Revenue from that segment fell 3 percent to $996 million. Overall, the company's net income totaled $2.2 million, up from a prior-year loss of $6.6 million. Revenue was nearly flat at $1.88 billion.

Monday's filing with the U.S. Securities and Exchange Commission said that Riggio, who is Barnes & Noble's largest shareholder with nearly 30 percent of the company's shares, will seek to negotiate a price with the company's board and pay for the deal with cash and debt. Riggio is making the offer in order to facilitate the company's review of its strategic options for separating its Nook business, according to the filing.

Barnes & Noble said the offer will be considered by a committee of three independent directors. But there is no set timetable for the process.

Morningstar's Wahlstrom said the deal makes sense considering the retail side of the business has been overshadowed by investments needed for the Nook business. He added that the move by Riggio was not unexpected: His large stake in the company — and history with it — would likely make finding extra financing the company needs easier.

"Riggio feels like he can run it better than just about anyone else, and with four decades of operating history there's not much reason to believe that he can't," he said.

On the news, Barnes & Noble shares rose $1.55, or about 11.5 percent, to close at $15.06. Its shares have traded in a 52-week range of $10.45 in mid-April to $26 later that same month.

Text Only
Breaking News
  • Very bad week: Airline disasters come in a cluster

    Nearly 300 passengers perish when their plane is shot out of the sky. Airlines suspend flights to Israel's largest airport after rocket attacks. An airliner crashes during a storm, and yet another disappears. Aviation has suffered one of its worst weeks in memory, a cluster of disasters spanning three continents.

    July 24, 2014

  • Indiana receives 245 children caught at US border

    New federal data show more than 200 unaccompanied children caught at the U.S. border have been placed with sponsors in Indiana.

    July 24, 2014

  • Witness: Teen's plane didn't show obvious distress

    A man who saw a plane flown by an Indiana teen who was killed during an around-the-world flight attempt says the aircraft was flying low but didn't show any obvious signs of distress before diving into the ocean off American Samoa.

    July 24, 2014

  • Ryan Dalziel takes Brickyard Grand Prix pole

    Defending race winner Ryan Dalziel earned his first IMSA TUDOR United SportsCar Championship pole position of the season Thursday in qualifying for Friday's Brickyard Grand Prix.

    July 24, 2014

  • Ohio State marching band chief fired after probe

    Ohio State University fired the director of its celebrated marching band on Thursday after determining he ignored a "sexualized" culture of rituals including students being pressured to march in their underwear and participate in sexually themed stunts.

    July 24, 2014

  • Gary man charged with murder in officer's death

    Prosecutors charged a 24-year-old man Thursday in the shooting death of a Gary police officer.

    July 24, 2014

  • MDU1.jpg Colts Camp Update: Pagano praises city, AU

    Blue skies and comfortable temperatures greeted the Indianapolis Colts on the first practice day of training camp Thursday at Anderson University.

    July 24, 2014 1 Photo

  • Indiana homeowners face $1.5M dam repairs bill

    A state agency says six dams on small lakes in a northern Indiana subdivision need about $1.5 million in repairs that the homeowners should pay to have completed.

    July 24, 2014

  • Judge rules against residents suit over hog smell

    A judge has ruled state law protects four large hog farms from lawsuits filed by residents of an eastern Indiana county who complained about waste and foul smells from their operations.

    July 24, 2014

  • Ex-Indy officer appeals convictions in fatal crash

    A former Indianapolis police officer filed an appeal Wednesday challenging his convictions for killing one motorcyclist and seriously injuring two others while driving drunk in his police cruiser.

    July 24, 2014

Featured Ads
More Resources from The Herald Bulletin
AP Video
Arizona Prison Chief: Execution Wasn't Botched Calif. Police Investigate Peacock Shooting Death Raw: Protesters, Soldiers Clash in West Bank Police: Doctor Who Shot Gunman 'Saved Lives' 'Modern Family' Star on Gay Athletes Coming Out MN Twins Debut Beer Vending Machine DA: Pa. Doctor Fired Back at Hospital Gunman Raw: Iowa Police Dash Cam Shows Wild Chase Obama Seeks Limits on US Company Mergers Abroad Large Family to Share NJ Lottery Winnings U.S. Flights to Israel Resume After Ban Lifted Official: Air Algerie Flight 'probably Crashed' TSA Administrator on Politics and Flight Bans Raw: National Guard Helps Battle WA Wildfires Raw: Ukraine's Donetsk Residents Flee Senators Push to End Hamas Threat in Cease-Fire A Young Victim's Premonition, Hug Before MH17 Raw: Deadly Storm Hits Virginia Campground Death Penalty Expert: 'This is a Turning Point' Raw: MH17 Victim's Bodies Arrive in Netherlands
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium
Front page
Poll

How important do you consider preschool for children?

Vital
Important but not critical
Not necessary
     View Results