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. No further details on the licensing deal were announced. In the meantime, 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.
