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.