Alameda's bookstore

Some who were fortunate to have steady incomes through the pandemic spent their extra cash on fancy stationary bicycles and outdoor heat lamps. In the case of our household, once it was clear how the pandemic was progressing, my wife and I spent our extra money at Books Inc. on Park St.

In part, we were looking for books to read ourselves and with our kids. (The pandemic was probably the longest period in my entire life — my own infancy included — I didn't step into a public library.) In part, we knew what it was like to lose a neighborhood bookstore and wanted to do our part to prevent a repeat. (Before moving to Alameda, we lived on the Peninsula, a few blocks from another Books Inc. location. It was a regular destination for us and our newborn — until it suddenly closed and the landlord instead leased the space to a fancy botox and liposuction clinic. Suffice it to say, we never had reason to take a walk with our kid through downtown Burlingame to go to the bookstore's replacement.)

We've kept up our special orders through the Books Inc website and when walking into the store on Park St, although at a slightly slower pace than during the middle of the pandemic...

So, it's unfortunate to hear that Books Inc. announced that they've entered Chapter 11 bankruptcy — a voluntary move by the company's management.

The San Jose Mercury News reported on the bankruptcy filing documents and notes that Books Inc's challenges come from both a decrease in top-line revenues and the effects of increasing expenses on the bottom line:

In 2019, Books Inc. generated revenue of $20.9 million, a court filing showed.

[...]

Revenue, however, slumped in 2024, falling to $17.1 million

[...]

“During the past few years, Books Inc. has seen significant increases in operating costs, including higher payroll and rental expenses,” [CEO Andrew] Perham stated in his declaration to the bankruptcy court. “At the same time, increased interest rates have made it more expensive to service the company’s debts.”

In particular, the expensive leases for their 11 retail locations sound like a major challenge. As part of today's announcement, Books Inc closed their north Berkeley location and will begin attempting to renegotiate other leases:

“The company intends to use the procedures afforded by the Bankruptcy Code to work with its landlords to adjust lease costs to align with the current levels of foot traffic and sales in the neighborhoods where it operates,” Perham stated in court records.

More stores may close if the retailer can’t strike fresh rental deals with property owners.

“If favorable lease arrangements cannot be reached for underperforming stores, then the debtor anticipates closing those locations to meet its profitability goals,” Perham stated.

The good news is that, as the Mercury News article points out, selling books is still a profitable business. Plus, Books Inc. has a track record of succeeding and surviving. (The company's online history page mentions successfully going through Chapter 11 bankruptcy in 1996-1997, and it successfully subsumed Printers Inc. in 2001.) It's just that the business and the expenses have to be very strategically managed.

For those who appreciate having an independent full-service bookstore here in Alameda, please do give Books Inc. your ongoing business. And equally or even more importantly, the landlord of this building on Park St. is hopefully negotiating lease terms with Books Inc. in good faith.

What's a better outcome: an active business that's open long hours, hosts events and school fundraisers, and fills a retail niche? or yet another vacant storefront? Let's hope for the former!