Barnes and Noble wanted to tackle the e-reader and eBook market in a big way. The company has lost over one billion dollars on their digital enterprise and are seeking new ways to stop the blood flow. The company has fired most of their executive team and sacked 190 jobs in the last year. New SEC filing has the Nation’s largest bookstore cutting Nook funding by 74%
Barnes & Noble’s fiscal quarter ended at the end of January, and the filing shows a $61 million loss on $157 million in revenue. It also notes their capital expenditures where a paltry $7.4 million on the Nook. That represents a massive decline in spending over last year, with a 55% drop in the past nine months. This is about the same time that the rumors starting about the accelerated decline of the entire Nook division.
The management shakeup and employee reorganization has been taxing on B&N. So much so, that they have failed to adhere to the terms of the Microsoft investment of 300 million. Barnes and Noble has not meant the content thresholds Microsoft established by opening up Nook stores in over 30 different countries. Because of this, Nook has not been able to attain the total funding until they meet their goals. Rumor has it, they might be able to do it by the end of April 2014.
Michael Kozlowski is the Editor in Chief of Good e-Reader. He has been writing about audiobooks and e-readers for the past ten years. His articles have been picked up by major and local news sources and websites such as the CBC, CNET, Engadget, Huffington Post and the New York Times.