Help answer case study 1: Identify the problem in this case. 2: Identify the cause of the problem. What leadership concepts or theories should Barnes & Noble apply when choosing its next CEO? 3: Make your recommendation. Do you think Barnes & Nobles recent history will make it even more difficult to recruit a new CEO?

Barnes & Noble Seeks a Leader

Struggling to halt losses from both its online business and its brick-and-mortar stores, the venerable bookseller Barnes & Noble is now trying to find a CEO who can stay in the job for a while. With five CEOs at the helm in the last five years, the company has suffered through chaos and uncertainty while trying to retain its 600 remaining U.S. stores in the face of a long decline. Barnes & Nobles financial troubles have been caused mainly by the market-dominating success of Amazon and, ironically, a minor resurgence of independent bookstores.

Most recently, Barnes & Noble fired CEO Demos Parneros, under whose leadership the companys shares dropped 32 percent in value, over unspecified violations of company policy that were later revealed to be sexual harassment claims and bullying. Parneros, formerly a 30-year veteran of Staples, Inc., has denied any misconduct and blames the company for disapproving of his business decisions, including a failed plan to sell the company. His countersuit claims defamation and breach of contract. The companys founder and long-time chair, Leonard Riggio, whom Parneros calls volatile, erratic and unprofessional, and someone who refuses to relinquish control, has said the company must heal and will begin the search for a CEO yet again. The company also calls Parneros characterization of Riggio lies and mischaracterizations, though some industry analysts believe Riggio has been heavy-handed and lacks a vision for the companys future.81 A group of leaders will oversee the chain in the meantime, including its chief financial officer, chief merchandising offer, and vice president of stores.

The CEO who preceded Parneros, Ronald Boire, was let go after less than a year in the job, on the grounds that he was not a good fit for the company. Boires tenure had been marked by an expansion of non-book offering such as games and toys and by the introduction of workshops in coding and 3D printing. All these were to bolster a focus on learning, personal growth and development [that] fits with our brand, Boire told a New York Times interviewer. But the company still racked up losses, especially since the Nook, Barnes & Nobles entry into the e-book reader market, has stumbled badly, costing the firm more money than it earned. Boire had followed Michael Huseby, who resigned in 2015, and William Lynch, who left in 2013. After Boires departure, Riggio postponed his retirement to serve as interim CEO, a job he may find himself filling once more.