Barnes & Noble, Inc. (NYSE:BKS) faced another big blow today after its founder-chairman Leonard Riggio said in an SEC filing that he has dropped his bid to purchase its retail business. Of course, the first big blow was widening losses that sent Barnes & Noble shares sinking more than 15%.

Barnes & Noble

Barnes & Noble reaffirms full-year guidance

Barnes & Noble, Inc. (NYSE:BKS) reported disappointing first quarter earnings Tuesday. The struggling bookseller’s losses more than doubled from $39.8 million or 76 cents a share to $87 million or $1.56 per share. Excluding one-time items, losses for the quarter ending July 27 stood at 86 cents. Analysts polled by Thompson Reuters were expecting 89 cents in adjusted earnings. Revenues also declined 8.5% to $1.33 billion. Same store sales were down 9.1%, while sales at its Nook business plummeted 20.2% to $153 million.

Moreover, the company reaffirmed its full-year sales guidance. Barnes & Noble, Inc. (NYSE:BKS) said that it expects same store sales to fall by high single digit percentage points this year.

Barnes & Noble’s tumultuous times

Barnes & Noble, Inc. (NYSE:BKS) is facing stiff competition from discount online retailers like Amazon.com, Inc. (NASDAQ:AMZN). Last month, its CEO William Lynch left the company. But Barnes & Noble hasn’t been able to find a successor so far. Lynch departed after the company’s Nook division posted a 34% decline in revenues. In June, Barnes & Noble announced that it will stop making tablets. Since early 2011, the company has been evaluating various strategic options for Nook, including a spin off. Last year, Microsoft Corporation (NASDAQ:MSFT) and Pearson Plc (NYSE:PSO) (LON:PSON) invested in the Nook unit of the company.

Earlier this year, Barnes & Noble, Inc. (NYSE:BKS) chairman Leonard Riggio offered to buy the company’s retail business, which has about 675 physical stores. The move was aimed at splitting the company. It wasn’t disclosed how much Mr. Riggio was willing to pay. Anyway, he has dropped plans now, but he reserves the right to make an offer in the future.

Barnes & Noble, Inc. (NYSE:BKS) shares tanked 15.42% to $14.10 at 11:21 AM EDT.