Nook sinking Barnes and Noble -

Despite the fact that it has set up an ebook business based around its Nook reader, book seller Barnes & Noble is seeing the writing on the wall.

The outfit's latest quarterly sales results show a lack of foot traffic in the stores and that could mean the end of the company's 675 stores.

Barnes & Noble reported a 7.4 percent drop in revenues and a $122 million loss for the fourth-quarter of its fiscal year. The company only earned $10 million compared to the more bookish $177 million in 2012.

Ironically, it looks like Barnes & Noble's focus on making Nook e-readers is killing the business. Nook has become a black hole for the company in these results.

Not only was there a 17 percent drop in Nook revenues, Barnes & Noble's device division made a $475 million loss. This made the traditional business float like a Chicago businessman with cement boots.

Analysts have been telling Breakout that the odds are stacked against Barnes & Noble.

Brian Sozzi, CEO and chief equities analyst at Belus Capital Advisors said he had no confidence in the company surviving.

He said that the company has been cannibalising itself with branded tablets and e-reader applications. The more it pumped the Nook app across platforms, the more the stores become increasingly irrelevant.