Barnes & Noble is spinning off its college bookstore business, which operates 714 stores, into a separate publicly traded company, the company announced Thursday.  "As more focused companies with differing potential growth profiles, capital needs and market dynamics, each company will benefit from strategic clarity and separate management and Board focus," the announcement said.

The transaction will leave the troubled Nook division with the core book retail business, at least for now.  After a crushing 55% sales decline in Nook device and content sales during the holiday season (see "Book, Toy, Entertainment Retailers Report Holiday Results"), it would be a tough sell.  Barnes & Noble had been clearing the decks for a transaction involving the two businesses (college bookstores and Nook) by buying out its other owners (see "B&N's Core Bookstore Business Growing").

Barnes & Noble shares rose nearly 7% on the news.