The raft of executive changes at Barnes & Noble announced today include a new CEO for its NOOK e-reader division after company CEO William Lynch resigned — effective immediately. The board of directors tapped Michael Huseby as CEO of NOOK Media LLC and president of Barnes & Noble; Lynch’s title has not been filled, while the NOOK CEO post is newly created. Max Roberts, CEO of Barnes & Noble College, will continue to lead the digital education strategy and report to Huseby. Huseby and Mitchell Klipper, CEO of the Barnes & Noble Retail Group, will report to B&N executive chairman Leonard Riggio. The changes come after the retailer reported disappointing financials for the three months that ended in April, along with an $18.3M charge to account for weak sales of its NOOK tablets and e-readers. That unit lost $108M, or -34%, during the quarter. The company said during the earnings call that it will “significantly reduce losses” in the business by finding partners to help make its color tablets. “We are taking big steps to reduce the losses in the Nook segment, as we move to a partner-centric model in tablets and reduce overhead costs,” Lynch said at the time. Shares of Barnes & Noble finished Monday mostly flat at $17.66, then dropped 4.6% in after-hours trading.
Huseby, formerly EVP and chief financial officer at Cablevision, joined B&N as CFO in March 2012. “As the bookselling industry continues to undergo significant transformation, we believe that Michael, Mitchell and Max are the right executives to lead us into the future”, Riggio said in a statement today announcing the changes. Barnes & Noble also said VP and corporate controller Allen Lindstrom has been promoted to CFO, reporting to Huseby. Kanuj Malhotra, VP Corporate Development, has been promoted to CFO of NOOK Media.