Connect with us

CBS News

Leonard Riggio, builder of Barnes & Noble empire, dies at 83

Avatar

Published

on


Barnes & Noble buys Colorado bookstore chain Tattered Cover


Barnes & Noble buys Colorado bookstore chain Tattered Cover

00:29

Leonard Riggio, a brash, self-styled underdog who transformed the publishing industry by building Barnes & Noble into the country’s most powerful bookseller before his company was overtaken by the rise of Amazon.com, has died at age 83.

Riggio died Tuesday “following a valiant battle with Alzheimer’s disease,” according to a statement issued by his family. He had stepped down as chairman in 2019 after the chain was sold to the hedge fund Elliott Advisors.

“His leadership spanned decades, during which he not only grew the company but also nurtured a culture of innovation and a love for reading,” reads a statement from Barnes & Noble.

Riggio’s near-half century reign began in 1971 when he used a $1.2 million loan to purchase Barnes & Noble’s name and the flagship store on lower Fifth Avenue in Manhattan. He acquired hundreds of new stores over the next 20 years and, in the 1990s, launched what became a nationwide empire of “superstores” that combined a chain’s discount prices and massive capacity with the cozy appeal of couches, reading chairs and cafes.

“Our bookstores were designed to be welcoming as opposed to intimidating,” Riggio told The New York Times in 2016. “These weren’t elitist places. You could go in, get a cup of coffee, sit down and read a book for as long as you like, use the restroom. These were innovations that we had that no one thought was possible.”

He grew up working class in New York City, liked to say he preferred socializing with childhood pals over fellow business leaders and was informal enough among associates to be known as “Lenny.” But in his time no one in the book world was more feared. With the power to make any given book a best seller, or a flop, to alter the market on an idle whim, Riggio could terrify publishers simply by suggesting prices were too high or that he might sign up such top sellers as Stephen King and John Grisham and publish them himself. He even tried to buy the country’s biggest book wholesaler, Ingram, in 1999, but backed off after facing government resistance.

By the end of the 1990s, an estimated one of every eight books sold in the U.S. were purchased through the chain, where front table displays were so valuable that publishers paid thousands of dollars to have their books included. Thousands of independent sellers went out of business even as Riggio insisted that he was expanding the market by opening up in neighborhoods without an existing store. Instead, independent owners spoke of being overwhelmed by competition from both Barnes & Noble and Borders Book Group, the rival chains sometimes setting up stores in close proximity to each other and to the locally owned business.

Barnes & Noble became so identified as an overdog that one of the 1990s’ most popular romantic comedies, “You’ve Got Mail,” starred Tom Hanks as an executive for the “Fox Books” chain and Meg Ryan as the owner of an endangered independent store in Manhattan.

“We are going to seduce them with our square footage, and our discounts, and our deep arm chairs, and our cappuccino,” Hanks’ character confidently declares. “They’re going to hate us at the beginning, but we’ll get ’em in the end.”

For a time, it seemed industry conversation was an ongoing response to Barnes & Noble. Publishers were known to change the cover or title of a book simply because a Barnes & Noble official had objected. “Angela’s Ashes” author Frank McCourt found himself condemned by the American Booksellers Association, the trade organization for independents, after agreeing to appear in a Barnes & Noble commercial. On the floor of the industry’s annual national trade show, long hosted by the ABA, independent store employees would hiss at attendees wearing Barnes & Noble badges.

When novelist Russell Banks, addressing Barnes & Noble’s annual shareholder meeting in 1995, declared that he was both a stock holder and a happy B&N customer, some independent sellers stopped offering his books.

“You must know that I’ll never read, buy or sell another word you write,” Richard Howorth, owner of Square Books in Oxford, Mississippi, wrote to him. “These are the kindest things I can think of to say to you.”

Tensions led to legal action when the ABA — on the eve of the 1994 convention — announced it was suing Barnes & Noble and five leading publishers for unfair trade practices. Some of the publishers were so angered they boycotted the gathering the following year and only returned after the ABA sold the show to Reed Exhibitions. In 1998, the ABA sued Barnes & Noble and Borders for unfair business practices (both cases were settled out of court).

Riggio began the 2000s at the height of power, with more than 700 superstores and hundreds of others outlets. But internet commerce was growing quickly and Barnes & Noble, with its roots in physical retail, lacked the imagination and flexibility of the startup from Seattle that called itself “Earth’s Biggest Bookstore,” Amazon.com. The online giant launched in 1995 by Jeff Bezos gained business throughout the 2000s and by the early 2010s had displaced Barnes & Noble through such innovations as the Kindle e-book reader and the Amazon Prime subscription service.

Bezos would liken himself to David taking down Goliath, although the contrast between the leaders also had the feel of an Aesop’s fable: The muscular, mustachioed Riggio, a boxer’s son, upended by the quick and clever Bezos.

“We’re great booksellers; we know how to do that,” Riggio acknowledged to the Times in 2016. “We weren’t constituted to be a technology company.”

Barnes & Noble started its own online site in the late 1990s, but such initiatives as the Nook e-book reader and a self-publishing platform failed to stop Amazon. Not even the collapse of Borders after the 2008-2009 economic crisis mattered for Barnes & Noble, which after decades of expansion closed more than 100 stores between 2009 and 2019.

By the time of Riggio’s retirement, independent sellers regarded the chain not as a threat, but as an ally in the fight against Amazon to keep physical stores alive. At the 2018 booksellers convention, Riggio and ABA CEO Oren Teicher, once enemies in business and in court, praised each other during a joint appearance.

“My standing here, doing what I’m about to do (introduce Riggio) would have been impossible to imagine several years ago,” Teicher said at the time. “The simple fact is that our business is stronger and American readers benefit when there is a vibrant and healthy network of brick-and-mortar bookshops all across the country.”

During the 2010s, Barnes & Noble seemed unleadable and unwanted. The board announced in 2010 that the company was for sale, but no one offered to buy it. Four CEOs left in five years and Barnes & Noble’s stock dropped 60% between 2015 and 2018. New rumors of a sale lasted for months before Elliott Advisors, which had previously purchased the British chain Waterstones, bought Barnes & Noble for $638 million and hired Waterstones chief executive James Daunt to lead B&N.

“I don’t miss being a business person, I had enough of that. But I do miss the bookselling part, helping to find books to recommend to customers,” Riggio told Publishers Weekly in 2021.

Bookselling and family often overlapped for Riggio. His brother Steve Riggio served for years as vice chairman of Barnes & Noble and another brother, Thomas Riggio, helped run a trucking company that shipped the store’s books. After being interviewed in 1974 by the trade publication College Store Executive, Leonard Riggio met for coffee with the editor, Louise Altavilla, who seven years later became his second wife (Riggio had three children, two with his first wife, one with his second).

Leonard S. Riggio was the eldest son of a prize fighter (who twice defeated Rocky Graziano) turned cab driver and a dress maker. Even in childhood, he advanced quickly, skipping two grades and attending one of the city’s top high schools, Brooklyn Tech. He studied metallurgical engineering at New York University’s night school before focusing on commerce, and by day absorbed the bookselling world and the rising cultural rebellion of the 1960s.

Working as a floor manager at the campus book store, he learned enough to drop out of school and start a rival shop in 1965 — SBX (Student Book Exchange), where he allowed student activists to use the copying machine to print copies of anti-war leaflets. SBX was so successful he bought several other campus stores and was in position by 1971 to buy Barnes & Noble and its single Manhattan store. A few years later, he became the rare bookseller to run television commercials, with the catchphrase “Barnes & Noble! Of Course! Of Course!”


Barnes & Noble opens a new chapter in old bank building

00:30

Riggio and the independent community may have seemed to hold opposing values, but they shared a love of reading and the arts and a liberal political outlook. He was a generous philanthropist and a prominent supporter of Democratic politicians. He was even friendly with the consumer activist and presidential candidate Ralph Nader, who featured Riggio, Ted Turner and Yoko Ono among others in his 2009 novel “Only the Super-Rich Can Save Us!”, in which Nader imagines a progressive revolution from above.

“Ever since he was a boy from Brooklyn, he’d had a visceral reaction to the way workings stiffs and the poor were treated on a day-to-day basis,” Nader wrote of Riggio, who did at times stand apart from his management peers. When some 200 business leaders were questioned by Fortune magazine in the 1990s about their political ideas, only Riggio supported the raising of worker pay.

“Money can become a burden, like something you carry on your shoulders,” he told New York magazine in 1999. “My nature is to be a ball-buster, but my role is to help people.”



Read the original article

Leave your vote

CBS News

Fear grows in Lebanon as device explosions enter 2nd day

Avatar

Published

on


Fear grows in Lebanon as device explosions enter 2nd day – CBS News


Watch CBS News



More electronic devices belonging to members of Hezbollah exploded in Lebanon on Wednesday. This is the second day of what Lebanese officials are calling a coordinated attack. BBC Middle East correspondent Hugo Bachega is in Beuirut with the latest.

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

CBS News

Man arrested on murder charge 14 years after victim vanished in Virginia

Avatar

Published

on


Police arrested a man on murder charges this month, 14 years after he allegedly killed a man in Virginia, but the victim’s body has never been found. 

Shane Ryan Donahue, a Virginia man, is presumed deceased, the Prince William County Police Department said Tuesday. He was last seen leaving his parents’ home in Nokesville, Virginia, on March 22, 2010. Donahue, 23, was headed to his house in Nokesville, but never made it there. 

Donahue was added to the National Missing and Unidentified Persons System after he vanished. According to records, Donahue did not have a car and regularly got rides from friends. He frequented Washington, D.C., Baltimore, Fauquier County, Virginia, and Northern Virginia.

The case stumped investigators, who followed a number of leads over the years. This spring, detectives reactivated the investigation and started looking at every detail of the case from scratch, officials said. They revisited people who had been interviewed during the initial investigation and reviewed “digital evidence in greater detail due to advances in analytical technology and modern police investigative practices,” according to a news release.

Officers said Donahue was last seen leaving his parents’ home with Timothy Sean Hickerson, now a 43-year-old Florida resident. Investigators connected Hickerson to a burglary at Donahue’s home that happened just days before the Virginia man disappeared. 

Detectives got an arrest warrant this month and, with the help of Florida’s Flagler County Sheriff’s Office, Hickerson was taken into custody in Palm Coast, Florida. Hickerson was charged with murder and burglary, is now set to be extradited to Virginia. 



Read the original article

Leave your vote

Continue Reading

CBS News

Trump created the controversial $10,000 SALT deduction cap. Now he wants to end it.

Avatar

Published

on


Former President Donald Trump, an avowed proponent of tax cuts, is floating the idea of reversing a measure passed during his tenure in the White House that effectively raised taxes for many U.S. homeowners.

In a post Tuesday on Truth Social, Trump suggested he would scrap a $10,000 cap on deducting state and local taxes (SALT) that was passed as part of the 2017 Tax Cuts and Jobs Act — a massive revamp that he has said boosted economic growth. 

Now, in the run-up to the November election, Trump said in the post he would “get SALT back, lower your taxes, and so much more,” although he stopped short of offering details. Trump made the post ahead of a speech he’s giving Wednesday at the Nassau Coliseum on Long Island.

Trump’s new proposal for getting rid of his $10,000 SALT deduction cap comes as the presidential hopeful is pitching several additional tax cuts that would, if enacted, reduce taxes for major groups of voters. He’s also vowed to eliminate taxes on Social Security benefits, a pledge that could get support from the nation’s senior citizens, as well as to end income taxes on tipped workers and on overtime pay, ideas that would help lower- and middle-income Americans. 

Yet Trump’s reversal on the SALT deduction has sparked skepticism from lawmakers as well as economists and policy experts. 

“So … now Trump is against the SALT tax cap which *checks notes* is a key part of the — only — major piece of legislation passed during his administration?” noted Chris Koski, a political science professor at Reed College in Portland, Oregon, on X.

Rep. Tom Suozzi, a Democrat from Nassau, Queens, said in a statement on Wednesday that he is “happy that the former president is saying that he has finally reversed his devastating decision in 2017 to cap the State and Local Tax (SALT) deduction.” He also urged Trump to convince Republican lawmakers to vote to restore the full deduction “if he is truly serious.”

The SALT deduction cap “has been a body blow to my constituents for the past 7 years,” Suozzi added.

Senator Chuck Schumer, a Democrat from New York, wrote on X,”Donald Trump took away your SALT dedications and hurt so many Long Island families. Now, he’s coming to Long Island to pretend he supports SALT. It won’t work.”

Asked for details about Trump’s proposal to restore the SALT writeoff, a spokeswoman for the Trump campaign told CBS MoneyWatch: “While his pro-growth, pro-energy policies will make life affordable again, President Trump is also going to quickly move tax relief for working people and seniors.”

Here’s what to know about the SALT deduction. 

What is the SALT deduction?

The state and local tax deduction allows taxpayers who itemize to deduct property taxes, sales taxes and state or local income taxes from their federal income taxes. Prior to the Tax Cuts and Jobs Act, there was no limit on how much people could deduct through the SALT deduction. 

But the 2017 tax overhaul passed under Trump limited the deduction to $10,000 – a blow to many homeowners in states with high property taxes, many of which are Democratic leaning. At the time of the law’s passage, the Treasury Department estimated that almost 11 million taxpayers in high-tax states like New York and New Jersey would forfeit $323 billion in deductions.

Who benefits from the SALT deduction?

Homeowners with high property taxes, such as people in New York, New Jersey and California, were the biggest beneficiaries of the the full SALT deduction. 

But some experts also noted that the SALT deduction primarily put more money in the pockets of higher-earning Americans. About 80% of the full SALT deduction had helped people earning more than $100,000 a year, according to the Tax Foundation. 

What happened after Trump capped the SALT deduction at $10,000?

The limit has increasingly impacted middle-class homeowners across the U.S. because of rising property taxes and incomes. Some lawmakers have also sought to either repeal or increase the SALT cap, but none of those efforts have borne fruit. 

Earlier this year, some lawmakers sought to double the SALT deduction cap to $20,000 for married couples, with the change retroactive for the 2023 tax year. But that bill was blocked in the House in February.

Won’t the SALT deduction cap expire anyway?

Yes, the SALT deduction cap is a provision that’s due to expire in 2025, as are many other parts of the Tax Cuts and Jobs Act, such as a reduction of the individual tax brackets. But Trump has previously indicated he wants to extend the provisions in his signature tax law.

How much would it cost the U.S. to repeal the SALT deduction cap?

It won’t be cheap, according to the the Committee for a Responsible Federal Budget, a think tank that focuses on budget and policy issues. 

Eliminating the $10,000 deduction limit “would increase the cost of extending the 2017 Tax Cuts and Jobs Act (TCJA) by $1.2 trillion over a decade,” the group estimates, adding that such a measure would be a “costly mistake.”

Extending the TCJA’s tax cuts would increase the nation’s deficit by $3.9 trillion over the next decade, the group estimates. By adding in a expiration or repeal of the SALT deduction cap, that would grow to $5.1 trillion, it added.

“Lawmakers should not extend the TCJA without a plan to – at a minimum – offset the costs of extension, but ideally the plan would raise revenues relative to current law and help put the nation’s debt on a better trajectory,” the group said in a statement.



Read the original article

Leave your vote

Continue Reading

Copyright © 2024 Breaking MN

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.