Waterstones boss: 'We've never been desperately profitable'

Waterstones managing director James Daunt has been talking about the "great difficulties" posed by online competition and e-readers.

He was brought in to reinvigorate the chain after it almost went bust and was bought by Russian billionaire Alexander Mamut.

Mr Daunt told BBC Breakfast why the shops had started selling the Kindle e-reader and why he got rid of three-for-two deals.