Willam Lynch resigns as Barnes & Noble CEO amidst falling Nook sales

Barnes & Noble Inc the largest US bookstore headed towards a breakup with of the resignation of CEO William Lynch and the elevation of Michael Huseby,  CFO, who has a track record of hiving off units.

Lynch stepped down on Monday with immediate effect  and Huseby, 57, was promoted as president and CEO of Nook Media. The company is not scouting for a new CEO and Huseby would report to Leonard Riggio, chairman, founder and largest shareholder of Barnes & Noble, the New York-based company said.

Barnes & Noble has been looking to split its businesses after Riggio said in February that he planned to put up its 680 stores and website for sale. A digital media division was created last year, probably aimed at selling it off.

Huseby came to Barnes & Noble in March 2012  from Cablevision Systems Corp, where he helped spin off two divisions, as the CFO. Now with Huseby in the saddle, the company  is weighing options for selling and separating its businesses.

TechCrunch had reported in May that Microsoft Corp was planning to make a bid for Nook Media, pushing its shares up 24 per cent to $22.08 on 9 May after the report.

Lynch's resignation comes two weeks after a dismal earnings report in the backdrop of the bookseller's losing battle against powerful rivals like Amazon.  The departure was part of a series of sweeping changes the company announced as it attempts to regain its footing following a failed initiative to build up its Nook division.

In its announcement of fourth-quarter earnings late last month, Barnes & Noble came with a move to cease making its own colour tablets, a move widely seen as an acknowledgment that it had not been able to compete against popular brands like Amazon's Kindle Fire and Apple's iPad.

The company further said it would form partnerships with third parties to make the colour readers, while continuing with making and selling its own monochrome versions of the Nook.

Max J Roberts, the chief executive of the college division, would report to Huseby, while Huseby and Mitchell S Klipper, the chief executive for the retail stores, would report to Leonard Riggio, the company's chairman.

Commentators say the moves appeared to be a step toward separating the digital and retail divisions, as the company had indicated it might do. Barnes & Noble has been in talks over a potential sale of its digital assets, as well as its 675 bookstores.

Riggio had earlier expressed his intention to take ownership of the physical stores that make Barnes & Noble the largest bookstore chain in the country.

''We thank William Lynch for helping transform Barnes & Noble into a leading digital content provider and for leading in the development of our award-winning line of Nook products,'' Riggio said in a statement issued Monday.  ''As the bookselling industry continues to undergo significant transformation, we believe that Michael, Mitchell and Max are the right executives to lead us into the future.''