Barnes & Noble, the nation’s largest store-based book retailer, unexpectedly announced the termination of its CEO, Demos Parneros, Tuesday saying he had violated company policies.
The company’s statement did not cite the violation that led to Parneros’ dismissal. Reached for comment, Senior Vice President Mary Ellen Keating said she couldn’t discuss the matter further.
The company did say, however, that the move came on the advice of its law firm, Paul, Weiss, Rifkind, Wharton & Garrison.
Parneros will not receive any severance payments after his departure and he is no longer a member of the company’s board of directors. He will not be replaced in the interim by an individual, but rather that his duties will be shared by several executives, including Chief Financial Officer Allen Lindstrom.
Amazon is now competing with Barnes and Noble in another way via Amazon Books.
A new CEO will be sought, but no time frame was given.
New York-based Barnes & Noble’s stock slid 4 percent Tuesday in trading on the New York Stock Exchange.
While it wouldn’t cite the reason, the company was careful to say Parneros’ termination did not involve any breach of financial reporting practices or policies, the company said. It also said it sticks by its earlier financial guidance of earnings $175 million to $200 million before interest, tax, depreciation and amortization guidance for fiscal 2019.
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