A violation of company policies has cost Barnes & Noble CEO Demos Parneros his job.
The retail chain did not detail the specific nature of how Parneros broke the rules but said that his firing “is not due to any disagreement with the company regarding its financial reporting, policies or practices or any potential fraud relating thereto,” according to a company filing on Thursday (July 5). “Mr. Parneros will not receive any severance payment, and he is no longer a member of the company’s Board of Directors.”
The board of directors, in firing Parneros, said it has followed the advice of the law firm Paul, Weiss, Rifkind, Wharton & Garrison.
As the retailer seeks a new CEO, a “leadership group” will oversee Barnes & Noble. That group consists of Chief Financial Officer Allen Lindstrom, Chief Merchandising Officer Tim Mantel and Vice President of Stores Carl Hauch. “Leonard Riggio remains executive chairman of the company and will be involved in its management,” the company said in its filing.
Parneros worked at Barnes & Noble since 2016 and took over as CEO in 2017. He had come from Staples, where he was president of its North American stores and online. Barnes & Noble stock price reportedly declined 32 percent under Parneros’ time as CEO.
Shares opened Thursday at $5.85 and were selling around that price by late morning. In a press release, Barnes & Noble affirmed “its previously announced EBITDA guidance of $175 million to $200 million for fiscal 2019.”