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Barnes & Noble was acquired, and taken private, by Elliott Management in 2019 for $638m. They immediately appointed James Daunt as CEO to apply a “bookstore-first” strategy, which has clearly paid off. Elliott Management is aiming for an IPO late 2026 after a successful turnaround.
Transcript
Barnes and Noble just found out how to win retail, and it has nothing to do with books. Here's what happened. A hedge fund bought the whole thing for $683,000,000 in 2019, handed it to a British guy who runs bookstores in London and told him to fix it. He had just one rule, no more corporate telling tier what to sell. Every location now curates its own shell or its own neighborhood. And that part worked because they're now sitting at 3,000,000,000 in sales and 400,000,000 in profit. But that's not even the most surprising part. The mall is a graveyard right now. Forever twenty one, Bed Bath and Beyond, Party City, they're all gone. And the landlords that used to have waiting lists are now texting back in five minutes. Barnes and Noble saw this as an opportunity, but here's the plan. They're actively moving into vacant Forever twenty one locations. The same store where you could buy eight tops for $14 and listen to EDM music at 11AM on a Tuesday, they're now selling Hemingway and Dostoyevsky. Somehow it's a little quieter in there now. So has this been successful? Yeah, they opened 67 new stores last year rank they have 60 planned for this year, leaving them well on the way to over a thousand locations total. And the hedge fund that bought it for $683,000,000 is now eyeing an IPO. Everyone said retail is dead. Barnes and Noble said, great, we'll take the corner unit.