Bookstore chain Books Inc files for Chapter 11 bankruptcy
Books Inc., the San Francisco Bay Area’s oldest independent bookstore chain, announced on January 21, 2025, that it has filed for voluntary reorganization under Chapter 11 bankruptcy protection. This strategic move aims to address ongoing financial challenges stemming from rising operating costs and shifts in consumer purchasing behaviors, issues that were intensified by the COVID-19 pandemic.
As part of the reorganization plan, Books Inc. will close its Berkeley store on February 9, 2025. Efforts are being made to transfer affected staff to the company’s remaining ten locations across the East Bay, Peninsula, San Francisco, and San Francisco International Airport. Customers holding gift cards from the Berkeley store can redeem them at any other Books Inc. location or through the company’s website.
CEO Andy Perham emphasized that Books Inc. is committed to continuing its 174-year legacy of serving California readers. He stated, “Books Inc. is not going away… Reorganizing with the tools afforded us by Chapter 11 is the fastest path toward putting our company on a smaller, financially stronger platform.” Perham also encouraged customers to support the company during this transition by shopping in-store or online.
The Chapter 11 filing allows Books Inc. to continue operations while restructuring its finances to achieve long-term sustainability. The company has assured that its website will continue to process orders as usual, and its Frequent Reader Program will remain active without interruption.
The initial court hearing regarding the reorganization is scheduled for January 27, 2025, after which a detailed timeline for the restructuring process is expected to be established. While the Berkeley store closure is confirmed, no official announcements have been made concerning additional store closures. Discussions with landlords and publishers are ongoing to secure favorable terms for the company’s continued operations.
Books Inc.’s decision to file for Chapter 11 highlights the broader challenges faced by independent bookstores nationwide, as they navigate high operational costs and evolving consumer habits in the post-pandemic era.
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