The oldest independent bookstore company in the Bay Area said Tuesday it has filed for bankruptcy.
Books Inc. announced it filed a voluntary petition for reorganization under Chapter 11 in U.S. Bankruptcy Court for the Northern District of California.
The privately held, 174-year-old company said in a statement it will use the protections of Chapter 11 reorganization “to continue operating while it establishes a sustainably solid financial footing in response to annual revenue losses.”
Books Inc. said the reorganization is necessary because of “steadily rising operating costs and dramatically changing consumer buying habits” exacerbated by the COVID-19 pandemic.
The new strategy involves closing the Berkeley store on Feb. 9 and moving some staff to positions at the company’s remaining 10 locations across the East Bay, the Peninsula and San Francisco and San Francisco International Airport locations.
“Books Inc. is not going away,” the company’s CEO Andy Perham said in the statement. “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.”
Perham said, “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.”
The company hopes loyal customers will help the company bounce back from bankruptcy.
“Support from Books Inc.’s customers, communities and business partners has been incredible,” Perham said. “The best thing that people can do to help Books Inc. quickly get through this challenging time is to come in the store and buy books, or order from us online. Our booksellers will continue to do their very best to provide readers with a vibrant, enriching and fun experience.”
Except for the Berkeley store, all other Books Inc. locations will remain operational, pending court approval of a proposed reorganization plan by the company that seeks to consolidate its number of physical retail stores.
The www.booksInc.net website will continue to operate and fulfill orders as normal. The company’s frequent reader program and related benefits will continue without interruption.
Customers with gift cards purchased at the Berkeley store will be able to use them at any of the company’s other stores or online.
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