Barnes & Noble shares spiked more than 20 percent on Thursday after the embattled retailer said it has appointed a special committee to explore a possible sale.
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|BKS||BARNES & NOBLE||6.61||-0.24||-3.50%|
The four-person committee will review “expressions of interest from multiple parties” about an acquisition, the company said in a press release late Wednesday. Leonard Riggio, the company’s executive chairman, founder and largest shareholder, is among the parties interested in buying the struggling brand.
While Barnes & Noble is prepared to consider offers, the company said there “can be no assurance” that a deal for a sale will be finalized. It’s unclear what other entities are interested in acquiring the company.
Barnes & Noble shares were down more than 15 percent so far this year before the announcement. The company ousted CEO Demos Parneros last July for unspecified violations of company policy. Parneros later sued the company for defamation and breach of contract, alleging officials manufactured false accusations of misconduct to force his exit.
Once a dominant bookseller, Barnes & Noble has contended for years with sagging sales and declining store traffic amid the rise of digital competitors such as Amazon. The company is in the midst of a turnaround effort, experimenting with new store layouts and re-focusing its sales strategy on high-performing segments.
Barnes & Noble laid off an unspecified number of workers last February after a weak holiday sales season.
*This story was upated to include Thursday trading.