By Daily Mail (U.S.) | Created at 2025-01-23 02:31:55 | Updated at 2025-01-23 05:00:03
2 hours ago
The oldest independent bookseller in San Francisco's Bay Area has filed for Chapter 11 bankruptcy protection and is set to close one of its stores.
Books Inc., a 174-year-old independent bookstore, announced on January 21 that it filed a 'voluntary petition for reorganization' after Covid-19 caused financial struggles and revenue loss.
In an official statement, CEO Andy Perham said that their Berkeley location is set to close doors on February 9.
'Books Inc. will close its Berkeley store on February 9, with some staff expected to be transferred to positions at the company's remaining ten locations across the east bay, peninsula, San Francisco and San Francisco International Airport,' the press release read.
'Customers with gift cards purchased at the Berkeley Books Inc. will be able to use them at any of the company's other stores or online.'
But Perham assured longtime buyers that the privately-owned bookstore is not going anywhere and will remain operational.
'Books Inc. is not going away,' he said.
'Our board, investors, senior managers, and key partners agree that reorganizing with the tools afforded us by Chapter 11 is the fastest path toward putting our company on a smaller, financially stronger platform from which we can continue our long legacy of serving California readers.
Books Inc., a 174-year-old independent bookstore, announced on January 21 that it filed a 'voluntary petition for reorganization' due to Covid-19 caused financial struggles and revenue loss
'Restructuring Books Inc. for long-term viability will require we make some very difficult decisions that affect our people and business partners, and we intend to do everything we can to minimize these impacts.
'The experience and dedication of our booksellers and management is the foundation on which we feel confident in our ability to transition Books Inc. to its next successful era.'
Speaking of the Berkeley store's closure, spokesperson Steven Silvers told Berkeleyside: 'The Berkeley store has been steadily underperforming in sales revenues since the pandemic.'
Landlord Rue-Ell Enterprises had considered a rent reduction but 'given the declined sales at the Berkeley store, the amount of reduction needed in order to operate profitably going forward would have been quite significant.'
Store manager Schyler Baker added: 'It's sad to be going, for sure. But it's been a good run.'
The San Leandro-based retailer still has 10 stores across the Bay Area, including three in San Francisco, two at San Francisco International Airport and in Alameda, San Leandro, Campbell, Mountain View as well as Palo Alto.
All of these locations will remain operational, pending court approval of their proposed reorganization plan.
The BooksInc.net website will also continue to operate and fulfill orders as normal.
Silvers confirmed to SF Standard that the first court hearing is scheduled for January 27.
In an official statement, CEO Andy Perham said that their Berkeley location is set to close doors on February 9 as a part of the new agenda
Apart from this, Perham also listed rising operating costs including higher payroll and rent as reasons to the reorganization
Books Inc. saw revenue drop from $20.9 million in 2019 to $11.3 million in 2020 - during the peak of the pandemic.
As sales began to increase through lockdowns, it managed to reach $18.9 million in 2023 but fell again to $17.1 million in 2024.
Apart from this, Perham also listed rising operating costs including higher payroll and rent as reasons to the reorganization.
The company will attempt to negotiate lease adjustments with landlords to reflect the current realities of foot traffic and sales as a part of the bankruptcy filing.
