US bookstore group Barnes and Noble is unlikely to have fended off activist shareholder Ron Burkle, who is attempting to wrestle control of the family-controlled business, following the release of its end of quarter results on Tuesday.
The company reported a net loss of $63 million for the quarter ending 31 July, despite total sales increasing by 21% to $1.4 billion, compared with the same period last year.
Shareholders weren't impressed, with the stock price in the New York-based group falling 2.2% to $14.66.
Burkle, whose Yucaipa Funds investment firm is the second largest shareholder behind the founding Riggio family, is trying to remove a poison pill provision that limits his shareholding to 20%. (Continue reading here)
Burkle has blamed the family for the management of its falling stock price, which has dropped 25% in the last year.
The Riggio family is pursuing a strategy that aims to improve and increase its digital offering, which currently includes e-commerce site bn.com and eReading product NOOK.
Last week, it announced that it was nominating former investment banker David G Golden, who has 20 years' experience advising technology companies, to the board of directors alongside chairman Len Riggio.
The battle is set to come to a head at the Barnes & Noble AGM on 28 September when Burkle intends to get himself and two Yucaipa nominees elected to board of directors.
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