Brit bookseller wooed B&N: sources

When Barnes & Noble’s former chief executive sued the company in August over his dismissal, a tantalizing detail stood out in his complaint.

Former CEO Demos Parneros, who was fired in early July for allegedly violating company policies, said that an unnamed “book retailer” was nearing a deal in June to purchase Barnes & Noble. He said the talks fell apart when the retailer withdrew its offer after conducting due diligence.

For months, people in the publishing industry wondered about the identity of the mystery would-be buyer.

People familiar with the situation say it was WH Smith, a UK retailer that sells books, stationery and other products.

A spokeswoman for Barnes & Noble declined to comment.

The company said last month that it is evaluating a possible sale and noted it had received interest from multiple parties, including the executive chairman, Len Riggio.

Representatives for WH Smith didn’t respond to requests for comment.

In its response to Parneros’ filing in Manhattan federal court, Barnes & Noble in late October alleged that he “intentionally sabotaged a potential acquisition of the company” by engaging in a “shocking monologue portraying the company in an extremely and unduly negative light.”

Parneros denied derailing the deal, saying in a statement, “I was fully supportive of the sales process from the start.”

The company said it had fired Parneros in part because he sexually harassed a female employee and bullied other staffers. Parneros has denied wrongdoing.

Merging with a foreign book chain could have transformed Barnes & Noble. The company has never built stores overseas, preferring instead to expand its chain in the US. Today, it operates 629 stores in all 50 states.