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Barnes & Noble pulls back from Nook business as sales fall

2013-06-25 16:05:00| Telecompaper Headlines

(Telecompaper) US retailer Barnes & Noble has announced plans to scale back its Nook e-reader and tablets business after growing losses in its latest quarterly report. The company took a USD 18.3 million impairment charge on the activities in the fiscal fourth quarter to April, after Nook sales fell 34 percent year-on-year to USD 108 million. EBITDA losses from the activities swelled to USD 177 million from USD 77 million a year ago, including USD 133 million in inventory write-downs. The company said it will continue to design e-reader products based on its Simple Touch and Glowlight platforms, but pursue a partnership with a consumer electronics company for the manufacturing of tablets. It will sell off its remaining inventory of Nook devices before launching a new range of co-branded products. It will also continue to grow its offering of e-books and Nook apps.

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