CEO of Barnes & Noble Inc, William Lynch, has resigned from his position effective immediately, according to an announcement from the giant bookstore chain.
Lynch’s decision to step down comes only a few weeks after B & N announced weakened sales, huge losses, and the diminishing popularity of the B & N e-reader, the Nook.
Lynch held the CEO spot for just three years. It was not divulged who will take Lynch’s place, but the New York-based company did say that it is currently looking over its business plan and will announce relevant information “when appropriate.” Barnes & Noble shares fell 5 percent on the news of the resignation.
There will be some movement in the executive branch of B & N as a result of the exit of Lynch. Michael Huseby, the chief financial officer, will become president of the company and the CEO of the Nook Media group. Controller Allen Lindstrom will take Huseby’s place as CFO. Mitchell Klipper, CEO of Barnes & Noble Retail Group, and Huseby, will be directly under the supervision of the company’s chairman and largest shareholder, Leonard Riggio, who owns 30 percent of shares.
The news did not come as a surprise to many analysts.
The board lost confidence in Lynch. Investors lost confidence,” Brian Sozzi, analyst at Belus Capital Markets said.