The CEO of Barnes and Noble resigned on Monday after low Nook sales.
William Lynch, who had been CEO since March 2010, resigned after the company’s digital division Nook has failed to compete successfully in the e-reader and tablet markets. Chief Financial Officer Michael Huseby has been promoted to president of the company and CEO of Nook Media, reported BusinessWeek.com.
The Nook started off with some success in the market, however, sales dipped during the last holiday shopping season. Competitor Amazon.com Inc. have given Barnes and Noble a run for its money since its introduction into the tablet market.
Increasing competition, Amazon led fellow bookstore chain, Borders, to go under in 2011 and has since been dominating the commerce of books.
As many books are going digital, this significant decision in Barnes and Noble’s executive operations has also come at a time when the company has decided to stop production of the Nook.
Barnes and Noble Chairman Leonard Riggio expressed his desires to buy Barnes & Noble’s chain of nearly 700 namesake bookstores from the parent company, making its future as a company uncertain. Maxim Group analyst John Tinker is quoted as saying on Reuters.com, “The next step is Chairman Leonard Riggio deciding if he’s going to bid to buy the retail division and from that they’ll then decide what to do with the Nook.”