Barnes & Noble has fired CEO Demos Parneros for reasons related to violation of the retailers’ policies, according to a company statement. Parneros, who was promoted from his position as COO in April 2017, will no longer have a place on the company’s Board of Directors and will not receive any severance payment.
Until the company’s search for a new CEO produces a suitable candidate, its Board of Directors has appointed a leadership group that includes CFO Allen Lindstrom, CMO Tim Mantel and Vice President, Stores Carl Hauch. Company founder Leonard Riggio, who serves as Executive Chairman, will be involved in the group’s management as well.
Barnes & Noble has had a tough time keeping a CEO in place. In August 2016, Ron Boire left the position after only 11 months. Parneros’ tenure was a bit longer, approximately 16 months from April 2017 to August 2018.
The termination comes as Barnes and Nobles lays off employees to save approximately $40 million in annual costs. However, “Parneros’ termination is not due to any disagreement with the Company regarding its financial reporting, policies or practices or any potential fraud relating thereto,” the filing revealed.
The company’s Board of Directors were advised by law firm Paul, Weiss, Rifkind, Wharton and Garrison LLP on Parneros’ removal.