A BELOVED bookshop with 174 years of history has filed for bankruptcy and announced it must axe one of its stores.
The chain’s CEO has made a vow, however, that offers a glimpse of hope amid the dreary news.
Books Inc., the oldest independent bookseller in San Francisco‘s Bay area, announced on January 21 that it has filed for Chapter 11 bankruptcy.
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The company was forced to take the “voluntary petition for reorganization” after Covid inflicted heavy financial damage to it.
It was also revealed that their store in the Berkeley location would close its doors on February 9.
Andy Perham, Books’s CEO, said in a statement: “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.”
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The statement continued: “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.”
However, amid the doom and gloom, Andy was able to offer some reassurance to his loyal customers.
He declared: “Books Inc. is not going away.
“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.
“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 about the Berkeley store’s closure, spokesperson Steven Silvers told Berkeleyside: “The Berkeley store has been steadily under-performing in sales revenues since the pandemic.”
Landlord Rue-Ell Enterprises had considered a rent reduction but decided that “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”.
Schyler Baker, the store’s manager, 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 and two at San Francisco International Airport.
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There are also stores in Alameda, San Leandro, Campbell, Mountain View and Palo Alto.
All of these locations will keep running despite the bankruptcy declaration, provided the court approves the restructuring plan.
The BooksInc.net website will also keep trading and fulfilling orders as usual.
Silvers confirmed to SF Standard that the first court hearing is scheduled for January 27.
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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.
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