Barnes & Noble, in Fight With Former C.E.O., Says He Was Fired for Sexual Harassment

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From The New York Times:

When Barnes & Noble fired its chief executive, Demos Parneros, last month, the bookseller was mysteriously quiet about why.

On Tuesday, the explanation came spilling out in a public exchange of accusations between Mr. Parneros and the company — including that Mr. Parneros was fired in part because of claims of sexual harassment by an employee.

The fight began when Mr. Parneros filed a lawsuit Tuesday claiming defamation and breach of contract. Mr. Parneros said in his complaint that he was fired without warning after a deal to sell the company fell through. Casting himself as a “well-respected retail executive,” he claimed that the bookseller had enabled rumors that he was let go because of “serious sexual misconduct.”

He described Barnes & Noble as a “financially troubled business” led by “a volatile founder who refuses to relinquish control.”

. . . .

In its response, Barnes & Noble’s board said in a statement that Mr. Parneros had been “terminated for sexual harassment, bullying behavior and other violations of company policies.” Until Tuesday, the company had said only that he was terminated without severance for violating policies, without explaining which ones except to say they were not related to financial matters.

. . . .

Publishers and investors have grown increasingly worried about the company’s future. Some industry analysts argue that Mr. Riggio has been too heavy handed in steering the company and lacks the vision to guide its recovery at a tumultuous moment.

. . . .

Barnes & Noble’s stock price has fallen 60 percent over the last three years, and the chain has struggled to reverse years of declining sales and foot traffic. In the last decade, the company has closed more than 150 stores, leaving it with a base of 633. It waged a losing battle with Amazon for a slice of the e-book market, and lost more than a billion dollars on its Nook e-book business.

Even as independent bookstores have bounced back and Amazon has expanded into brick-and-mortar retail, Barnes & Noble has still failed to recover ground.

But Mr. Parneros said that he was lavished with praise by Mr. Riggio, the Barnes & Noble board, investors and publishers as he helped roll out new store prototypes and sales categories.

In November, the activist investor Sandell Management offered to buy the chain, an overture that Barnes & Noble refused. In the spring, a book retailer made a bid, which Barnes & Noble also declined, according to Mr. Parneros.

. . . .

In June, after conducting due diligence, the second purchase offer was withdrawn, leaving Mr. Riggio “extremely upset” because he “no longer had a graceful exit from the company,” according to Mr. Parneros’ lawsuit.

Link to the rest at The New York Times