Barnes & Noble (BKS) Announces Relocation of NOOK Media

Barnes & Noble (NYSE: BKS) announced that NOOK Media, LLC, has entered into an Assignment of Lease for its 208,000 square foot Palo Alto, California campus. Employees will be relocated to new state-of-the art facilities totaling 88,000 square feet. NOOK employees will move to a new facility in Santa Clara, California, while Barnes & Noble College’s digital education employees will relocate to a facility in Mountain View, California. The relocations are expected to occur by the end of the first quarter of fiscal 2015.

This action will result in a net reduction of annual occupancy expenses of approximately $10 million, reducing the Company’s future lease commitments by approximately $102 million. The asset impairment charges resulting from this relocation are approximately $30 million, which are expected to be recorded in the fourth quarter of fiscal 2014. The Company also expects to incur cash closing costs and to adjust lease accounting items in the first quarter of fiscal 2015 to reflect the impact of these relocations.

You May Also Be Interested In

• Ford (F) earnings beat estimates in Q1, revenue falls short; stock up
• Plexus Corp (PLXS) Tops Q2 EPS by 7c
• Arvinas Inc. (ARVN) Appoints Randy Teel as Chief Business Officer