Shares of Barnes & Noble (BKS) slid as much as 10% to an intraday low of $16.66 in early trading on Thursday, after Leonard Riggio, the company’s founder and largest shareholder, cut his stake in the struggling book retailer to 20% by selling 3.7 million shares worth about $64 million.
After the sell off, Riggio remains the company’s largest shareholder with a 20% stake.
“After this sale I remain the company’s largest shareholder, a position I feel very good about,” Mr. Riggio said in a statement. “I love this company and I believe in its future as I do in all of the wonderful people who work here.” Riggio revealed he has no plans to sell more stock this calendar year and that his sale was part of his long-term financial and estate planning.
Earlier this month, John Malone, one of Barnes & Noble’s biggest investors, sold 90% of its 16.6% stake in the struggling bookstore retailer, ending a nearly three-year $204 million bet that the company would emerge as a dominant seller of e-books.
B&N, like other brick-and-mortar booksellers, has been struggling in the face of competition from e-book rivals such as Amazon (AMZN)’s Kindle and Apple (AAPL)’s iPad.
Barnes & Noble said sales of its Nook e-reader fell 50% in Q3.