The retail world is witnessing another heartbreaking chapter as an iconic bookstore chain files for Chapter 11 bankruptcy, signaling a troubling trend for independent bookshops across the U.S. Bay Area’s oldest independent bookstore company, Books Inc., has announced the closure of one of its long-standing stores as part of its Chapter 11 reorganization. This move comes amid growing financial difficulties faced by the beloved bookstore, which has been a cornerstone of the region’s literary scene for several decades. The silver lining is that the bankruptcy filing isn’t the end of the road for Books Inc. Keep reading to learn what’s next for the bookstore and how it plans to bounce back stronger.
Why Books Inc. filed for bankruptcy
On Tuesday, January 21st, Books Inc. filed for voluntary reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Northern District of California. This strategic move allows the beloved, 174-year-old chain of neighborhood bookstores to continue operations while restructuring its financial foundation in response to mounting challenges, including years of revenue losses driven by rising operational costs and shifts in consumer buying patterns, which were compounded by the impact of the COVID-19 pandemic.
In 2020, Books Inc.’s revenue dropped sharply from $20.9 million in 2019 to $11.3 million due to pandemic-related disruptions. However, the bookstore’s revenue rebounded in the following years, reaching $18.9 million in 2023. Unfortunately, 2024 saw a further decline of 9.5%, bringing revenue to $17.1 million, according to TheStreet.
Despite these financial setbacks, Books Inc. remains committed to its mission. “Books Inc. is not going away,” said Andy Perham, a 15-year employee who became Chief Executive Officer in 2019, in a press release. “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 continued, “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.”
Which Books Inc. store is closing?
As part of its Chapter 11 reorganization, Books Inc. will close its Berkeley location on February 9th. Some staff members will be transferred to other positions at the company’s remaining stores across the East Bay, Peninsula, San Francisco, and San Francisco International Airport.
Customers who hold gift cards from the Berkeley store can still use them at any of Books Inc.’s other locations or online at www.booksinc.net.
Except for the Berkeley store, all other Books Inc. locations will remain open, pending court approval of the company’s reorganization plan, which seeks to consolidate its physical retail footprint. The BooksInc.net website will continue to operate as usual, processing orders without disruption.
Additionally, Books Inc.’s Frequent Reader Program and its associated benefits will remain active without any interruptions.
How customers can contribute to Books Inc.’s comeback
Perham expressed hope that the company’s loyal customer base will play a crucial role in helping the bookstore emerge from Chapter 11 bankruptcy in the coming months.
“Support from Books Inc.’s customers, communities, and business partners has been incredible,” he said in a statement. “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.”
History of Books Inc.
According to its company’s website, Books Inc. was founded in 1851 by European immigrant Anton Roman, who initially opened a bookstore in Shasta City, California. In 1855, he relocated the store to San Francisco, where it began to establish its legacy.
Over the years, the bookstore changed ownership multiple times until 1946 when Lew Lengfeld took over and rebranded the store as Books Inc. Under Lengfeld’s leadership, the company expanded, opening new locations in New Mexico, Denver, Dallas, Seattle, and Southern California.
By the time Lengfeld passed away in 1996, the chain had grown to 12 stores. However, the rise of national bookstore chains led to financial struggles, forcing Books Inc. to file for Chapter 11 bankruptcy. The company successfully emerged from bankruptcy in August 1997 with four stores, and a fifth location was added in 1998, marking a new chapter in its storied history.