New York, NY — The Board of Directors of Barnes & Noble, Inc. (NYSE: BKS) today announced the termination of its Chief Executive Officer, Demos Parneros, for violations of the Company’s policies. This action was taken by the Company’s Board of Directors who were advised by the law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP. Mr. Parneros’ termination is not due to any disagreement with the Company regarding its financial reporting, policies or practices or any potential fraud relating thereto. Mr. Parneros will not receive any severance payment and he is no longer a member of the Company’s Board of Directors.
In order to ensure continuity going forward, the Company has appointed a leadership group to share the duties of the office of the CEO until a new leader is named. Those appointed include: Allen Lindstrom, Chief Financial Officer, Tim Mantel, Chief Merchandising Officer and Carl Hauch, Vice President, Stores. Leonard Riggio remains Executive Chairman of the Company and will be involved in its management.
The Company said it will begin an executive search for a new CEO and that no changes in its goals or objectives are planned. Additionally, the Company affirms its previously announced EBITDA guidance of $175 million to $200 million for fiscal 2019.
A reconciliation of the Company’s EBITDA guidance to operating income is included in the press release issued by the Company on June 21, 2018. EBITDA means earnings before interest, tax, depreciation and amortization.
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