The bookseller revealed that Knighton sold 190,000 shares, including 73,077 under its Second Unapproved Share Option scheme, at a price of 363p a share.
Knighton, who announced his departure as the company published its interim results a fortnight ago, retains an interest in Ottakar's with 20,000 shares and has options to buy up to 9,588 shares. His replacement has yet to be announced.
The retailer recorded a pre-tax loss of£2.8 million for the period ending July, mainly because of the absorption of Hammicks bookstores. However, Ottakar's recorded a 19 per cent increase in sales to£68 million for the period.