Barnes & Noble Fires CEO for Cause

Barnes & Noble July 3 announced that its board has fired CEO Demos Parneros for violations of undisclosed company policies. The national bookseller said the action was taken under advisement by the law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP.

The chain said Parneros’ termination was not due to any disagreement regarding its financial reporting, policies or practices or any potential fraud relating thereto. Parneros will not receive any severance payment and he is no longer a member of the board.

In meantime, Barnes & Noble has appointed a leadership group to share the duties of the office of the CEO until a new leader is named. They include CFO Allen Lindstrom, Tim Mantel, chief merchandising officer and Carl Hauch, VP, stores. Leonard Riggio remains executive chairman and will be involved in its management.

The bookseller, which is dealing with changing consumer habits toward book purchases and digital entertainment, said it would begin an executive search for a new CEO and that no changes in its goals or objectives are planned. Additionally, Barnes & Noble affirms its previously announced pre-tax guidance of $175 million to $200 million for fiscal 2019.