UPDATE 1-Barnes & Noble says Nook, retail sales plunge, more pain coming
* To co-brand Nook tablets with a consumer electronics manufacturer
* Same-store sales down 8.8 pct last quarter, Nook revenues down 34 pct
* Shares down 7.5 pct
June 25 (Reuters) - Barnes & Noble Inc reported on Tuesday that its quarterly net loss more than doubled as sales of its Nook device and e-books continued to plunge, and it forecast a sharp drop in business at its bookstores.
Shares were down 7.5 percent at $17.40 in premarket trading.
Revenue of its Nook business, including e-books and devices, fell 34 percent as it sold fewer e-readers and tablets and slashed prices.
Barnes & Noble, the largest U.S. bookstore chain, launched the first version of the Nook e-reader in 2009 to take on Amazon.com Inc's market-leading Kindle and secure a place in the fast growing e-books market. It now also competes with devices by Apple Inc and Google Inc.
But fighting such deep pocketed rivals has been expensive: Barnes & Noble lost $475.4 million last fiscal year and it had to repeatedly cut prices to try to attract shoppers.
To contain those losses, Barnes & Noble said its tablets will now be produced and marketed in partnership with a consumer electronics manufacturer it did not identify. It will continue to develop its e-readers itself.
The picture was also bleak in its retail business, consisting of its 675 bookstores and accounting for two-thirds of sales. Sales at stores open at least 15 months fell 8.8 percent last quarter. Barnes & Noble expects retail sales to be down by a high single digit percentage in its new fiscal year.
Earlier this year, Leonard Riggio, the company's chairman, founder and largest shareholder, said he wanted to buy Barnes & Noble's bookstores chain.
One bright spot was its college bookstore chain, where same-store sales rose 7.5 percent. Still, Barnes & Noble forecast a low-single digit percentage decline for fiscal 2014.
Company wide, revenue was down 7.4 percent to $1.28 billion.
The retailer reported a net loss of $118.6 million, or $2.11 per share, for the fiscal fourth quarter ended April 27, compared with a loss of $56.9 million, or $1.06 per share, a year earlier.