According to the newspaper “The Wall Street Journal” that the company Barnes&Noble, according to rumors, were close to acquiring this spring WH Smith. If B&N was bought by WH Smith, one of the largest retail sellers of books in the UK, the journal said the move “could convert the” chain of bookstores, which undergoes complex changes in the business.
News of the possible sale was quiet in the summer, after the former CEO of B&N demos Parneros filed a defamation lawsuit against B&N. Parneros, the dismissal of which was originally due to B&N as an excessive violation of the rules of the company, claimed in its lawsuit that, among other things, his relationship with the founder of B&N Len Riggio got corrupted after the deal to buy the company fell through in June.
Last week B&N responded to the claims of Parneros, saying that he “deliberately sabotaged the potential acquisition of the company.” Parneros since denied that he tried to stop the transaction, telling the publication in his statement: “I fully support the sales process from the beginning.” Neither B&N nor WH Smith did not comment to the journal.
If the deal with WH Smith continued, it would have attracted a smaller company buying a larger one. During the financial year ended 31 August 2018, WH Smith sold for $1.65 billion, compared with sales of $3.7 billion for B&N in the financial year ending 30 April 2018. WH Smith has posted an operating profit of $213 million compared to a net loss of $125 million in B&N, a figure that includes $135 million in one-time payments.
Last week WH Smith agreed to buy the us company, InMotion, which operates 114 stores in 43 airports. He sells a number of digital accessories, including headphones, accessories for traveling, mobile power, portable speakers and cameras, but not books. In addition to its bookstores WH Smith manages retail business for travel, which for the last financial year, received income in the amount of $879 million.