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Bay Area book retailer Books Inc. files for Chapter 11; closing store

Books Inc. seeks to reorganize under Chapter 11.

A 174-year-old independent local bookstore retailer is filing for bankruptcy reorganization.

San Leandro, Calif.-based Books Inc., which operates 11 stores (including two locations in different terminals of San Francisco International Airport) in the Bay Area and an e-commerce site, has filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Northern District of California. 

Books Inc., which is privately held and calls itself the Bay Area’s oldest independent bookstore company, says the protections of Chapter 11 reorganization will allow it to continue operating while it establishes a s”ustainably solid financial footing.”

As part of the reorganization, Books Inc. will close its Berkeley, Calif. store on Sunday, Feb. 9, 2025. The company expects to transfer some staff to positions at the company’s remaining 10 locations across the Bay Area. The company employs about 150 people in total.

Books Inc. said in a statement on its website that “steadily rising operating costs and dramatically changing consumer buying habits exacerbated by the COVID pandemic” have created annual revenue losses it needs to respond to.

"Books Inc. is not going away," said Andy Perham, CEO, Books Inc. "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." 

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Except for the Berkeley store which will close on Feb. 9, all other Books Inc. locations will remain in operation pending court approval of the company’s proposed reorganization plan, which will seek to consolidate the number of physical retail stores. 

The BooksInc.net website will continue to operate and fulfill orders as normal and the retailer’s Frequent Reader loyalty program will continue without interruption.

Books Inc.’s bankruptcy filing comes as an analysis of holiday shopper behavior from Nov. 24 to Dec. 28 from AI-based insights platform Pass_by indicates that bookstores are making something of a comeback. Bookstores were the top retail category during that period by spend (up 13.29%), with overall data showing holiday shoppers spending more during fewer visits to stores.

In another good sign for bookstores, the leading brick-and-mortar retailer in the space, Barnes & Noble, is adding to its store fleet in 2025.

[READ MORE: Report: Barnes & Noble to open 60 stores in 2025]

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