The oldest independent bookseller in San Francisco's Bay Area has filed for bankruptcy protection and is about to close one of its stores.
Books Inc., a 174-year-old independent bookstore, announced Jan. 21 that it had filed a “voluntary petition for reorganization” after Covid-19 caused financial problems and revenue losses.
In an official statement, CEO Andy Perham said their Berkeley location will close its doors on February 9.
'Books Inc. will close its Berkeley store on February 9, with some employees expected to be transferred to positions at the company's remaining 10 locations in the Eastern Bay, Peninsula, San Francisco and San Francisco International Airport,” it said press release.
'Customers with gift cards purchased from Berkeley Books Inc. can use it in any of the company's other stores or online.'
But Perham assured longtime shoppers that the private bookstore isn't going anywhere and will remain operational.
'Books Inc. isn't going away,” he said.
“Our board, investors, senior managers and key partners agree that reorganizing with the tools provided by Chapter 11 is the fastest path to putting our company on a smaller, financially stronger platform from which we can continue our long legacy of to continue serving California readers. .
Books Inc., a 174-year-old independent bookstore, announced Jan. 21 that it had filed a “voluntary petition for reorganization” as Covid-19 caused financial distress and loss of revenue
'Restructuring Books Inc. long-term viability will require us to make some very difficult decisions that impact 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 upon which we are confident in our ability to continue to build Books Inc. to the next successful era.'
Speaking about the closure of the Berkeley store, spokesperson Steven Silvers told Berkeleyside: “The Berkeley store has been steadily underperforming in terms of sales revenue since the pandemic.”
Landlord Rue-Ell Enterprises had considered a rent reduction, but “given the decreased sales at the Berkeley store, the amount of reduction required to operate profitably in the future would have been quite significant.”
Store manager Schyler Baker added: “It's certainly sad to have to go. But it was a good run.”
The San Leandro-based retailer still has 10 stores throughout the Bay Area, including three in San Francisco, two at San Francisco International Airport and in Alameda, San Leandro, Campbell, Mountain View and Palo Alto.
All of these locations remain operational, pending court approval of their proposed reorganization plan.
The BooksInc.net website will also continue to operate normally and fulfill orders.
Silvers confirmed to SF Standard that the first court hearing is scheduled for January 27.
In an official statement, CEO Andy Perham said their Berkeley location will close its doors on February 9 as part of the new agenda.
Apart from this, Perham also cited rising operating costs, including higher labor costs and rent, as reasons for the reorganization
Books Inc. saw revenue drop from $20.9 million in 2019 to $11.3 million in 2020 – during the height of the pandemic.
When sales started to rise due to the lockdowns, it managed to reach $18.9 million in 2023, but fell again to $17.1 million in 2024.
Apart from this, Perham also cited rising operating costs, including higher labor costs and rent, as reasons for the reorganization.
The company will attempt to negotiate lease adjustments with landlords to reflect the current reality of foot traffic and sales as part of the bankruptcy filing.
