174-year-old bookstore chain files for Chapter 11 bankruptcy amid fears of mass closures

The oldest autarkic bookseller successful San Francisco's Bay Area has filed for Chapter 11 bankruptcy extortion and is acceptable to adjacent 1 of its stores. 

Books Inc., a 174-year-old autarkic bookstore, announced connected January 21 that it filed a 'voluntary petition for reorganization' aft Covid-19 caused financial struggles and gross loss. 

In an authoritative statement, CEO Andy Perham said that their Berkeley determination is acceptable to adjacent doors connected February 9. 

'Books Inc. volition adjacent its Berkeley store connected February 9, with immoderate unit expected to beryllium transferred to positions astatine the company's remaining 10 locations crossed the eastbound bay, peninsula, San Francisco and San Francisco International Airport,' the property merchandise read. 

'Customers with acquisition cards purchased astatine the Berkeley Books Inc. volition beryllium capable to usage them astatine immoderate of the company's different stores oregon online.'

But Perham assured longtime buyers that the privately-owned bookstore is not going anyplace and volition stay operational. 

'Books Inc. is not going away,' helium said. 

'Our board, investors, elder managers, and cardinal partners hold that reorganizing with the tools afforded america by Chapter 11 is the fastest way toward putting our institution connected a smaller, financially stronger level from which we tin proceed our agelong bequest of serving California readers. 

'Restructuring Books Inc. for semipermanent viability volition necessitate we marque immoderate precise hard decisions that impact our radical and concern partners, and we mean to bash everything we tin to minimize these impacts. 

'The acquisition and dedication of our booksellers and absorption is the instauration connected which we consciousness assured successful our quality to modulation Books Inc. to its adjacent palmy era.'

Speaking of the Berkeley store's closure, spokesperson Steven Silvers told Berkeleyside: 'The Berkeley store has been steadily underperforming successful income revenues since the pandemic.'

Landlord Rue-Ell Enterprises had considered a rent simplification but 'given the declined income astatine the Berkeley store, the magnitude of simplification needed successful bid to run profitably going guardant would person been rather significant.' 

Store manager Schyler Baker added: 'It's bittersweet to beryllium going, for sure. But it's been a bully run.'

The San Leandro-based retailer inactive has 10 stores crossed the Bay Area, including 3 successful San Francisco, 2 astatine San Francisco International Airport and successful Alameda, San Leandro, Campbell, Mountain View arsenic good arsenic Palo Alto.

All of these locations volition stay operational, pending tribunal support of their projected reorganization plan. 

The BooksInc.net website volition besides proceed to run and fulfill orders arsenic normal. 

Silvers confirmed to SF Standard that the archetypal tribunal proceeding is scheduled for January 27. 

Books Inc. saw gross driblet from $20.9 cardinal successful 2019 to $11.3 cardinal successful 2020 - during the highest of the pandemic. 

As income began to summation done lockdowns, it managed to scope $18.9 cardinal successful 2023 but fell again to $17.1 cardinal successful 2024. 

Apart from this, Perham besides listed rising operating costs including higher payroll and rent arsenic reasons to the reorganization. 

The institution volition effort to negociate lease adjustments with landlords to bespeak the existent realities of ft postulation and income arsenic a portion of the bankruptcy filing.