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June 30, 2008

Olsson's Filing for Bankruptcy

2008_0617_olssons.jpgIt was just a couple weeks ago that we told you about Olsson's plans to shutter its Penn Quarter location -- which it finally did, on Friday. In an email to customers, owner John Olsson had said that "The landlord has other plans for the space," and we confirmed that those plans were to bring in UK noodle shop Wagamama. But the Post reported on Saturday that it looks like there's a lot more to that story than Olsson originally admitted: Olsson's is filing for Chapter 11 bankruptcy protection.

Last week, two of its biggest publishers, Random House and Penguin Group, as well as Hachette Book Group petitioned the U.S. Bankruptcy Court in Greenbelt to place Olsson's in involuntary Chapter 7 bankruptcy, which would force the company to liquidate.

Two other creditors hold claims on the company's book and music inventories, Olsson's attorney Richard H. Gins said.

Eep. Apparently all the people who always say they wish there were more independent bookstores in D.C. still order from Amazon.com most of the time.

Here's hoping the Chapter 11 filing will allow Olsson's to stay in business in some form or another -- though it definitely doesn't look good.

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Comments (17) [rss]

It seems that thriving indie bookstores have carved out a niche for themselves as a scene: Kramerbooks with the cafe, bar and late hours, and Politics and Prose with the daily readings and nice coffee-cafe with free wifi. Busboys & Poets have their niche selection integrated into their restaurants.

Olssons is still trying to be a general-service bookstore/music store to all people and that's a virtually impossible business to be in these days. They've tried cafes in a few stores but they've always been bland, charged for wifi and sporadically staffed. They tried DVD rentals, but it was a pain to use the service since they didn't have a return slot, and with Netflix and OD that business is becoming obsolete.

Maybe they could try to remake their remaining stores as food/bar/book destinations? Ditch most of the dying music section and keep a carefully curated small stock of new stuff and vinyl? Try to specialize in small offbeat presses, oddball titles and graphic novels like Atomic up in Baltimore? They just can't keep staying the same and hope to survive. I hope they make it somehow.

 

sad news.

 

So it wasn't the big bad evil landlord after all?

Any bookstore that charges for WIFI deserves to go out of business.

 

Creative destruction.

 

Very sad news, indeed.

I appreciate their Dupont location because it isn't Kramerbooks: they actually have discount sales (ever seen a markdown at Kramer? I didn't think so), their staff knows about books and isn't dismissive to customer queries, and they are really great about special orders. And they're not the behemoth that is Books-A-Million around the corner.

So what are they to do? I agree that they need to work on having a better selection, overall, in the book end of things. Outside of fiction and politics, their selection is often woeful. But they do try to make things right. Their DVD rental is great for things like Criterion Collection and other films that are tougher to get via Netflix (and the lack of a return slot isn't a huge deal, as they are often fairly accommodating about slightly late returns). And their music selection was always decent, if not as cheap as the loss-leaders (e.g. Best Buy).

But they need a clear identity, for sure, and that has been lacking for years. I hope they can get their act together soon.

 

...all the people who always say they wish there were more independent bookstores...

I think those people were referring to independent adult bookstores but left out the adult part to hide their shame. Wagamama sounds perfect for those evenings out in Penn Quarter when you just want to 'do some ramen'.

 

I and several other members of my family worked for Olssons for several years from the late 90's until I graduated college. This is sad, but not totally unexpected, Olssons and stores like it have been aggressively targeted by national chains for years now. Wherever you find a successful independent bookstore, you will at some point find a national chain move in a block away to tap the market the indie developed.

Also Olssons was a bit dysfunctional in its upper management and they expanded way to much in the late 1990's, but this was overall largely beyond their control.

 

I worked for Olsson's for 17 years, left in 2005, saw it all. Very sad to see it come to this--loved my customers, loved our suppliers, loved my coworkers--but the sad truth is if you don't own your own buildings--the very neighborhood you help become hip, is the same neighborhood that will gentrify beyond your means.

Word to the wise--go to bookstores, meet authors, find out new stuff and invest in the intellectual life of the city.

Hopefully . . .

 

There are still plenty of independent bookstores in the city but this is a big blow. I've had reports from store owners of people buying from Amazon and Borders but returning books to indie shops.

That hurts even more when the one thing indie shops can do to try to compete with the rock bottom online prices is provide good customer service.

 

Sucks. I always shop at Olssons when given the option, but it's totally understandable that they'd be filing Chapter 11... how can you compete with a Borders five blocks away that sends out 40% off coupons every week?

 

Sad,

Olsson's wasn't my favorite indie bookstore in DC, but a few of it's locations are much more on my beaten path than any of the other options. I do hope they can figure out a real indentity and make it work, but unfortunately it seems unlikely.

On a more optimistic note:

I really hope Chapters finds a space for their Literary Arts Center soon because I love them and the project sounds amazing. For anyone who wasn't familiar with Chapters (formerly on 11th at E) see here(http://www.chaptersliterary.com/). They're currently in storage, but looking for a new space.

 

Looking back at my visit to the Dupont location yesterday, I had my suspicions about the financial status of the store when quite a few of their featured CD titles were out of stock, with a "please inquire at service desk" note where the listening station copy resided. That's usually a warning sign that the music distributor is no longer extending credit to a retailer, and a definite sign of bad things to come.

A query of the manager on duty claimed "no foreseeable problems" for the store - yet she didn't say anything about bankruptcy filings and whatnot.

 

It's especially sad considering the string of DC-based stores that have gone out of business over the decades. I tried to get my books and magazines from Olsson's when possible but with the need for textbooks and discounts on book shipments I didn't buy there as often as before.

 

dc loves to tout it's "independents", but at the end of the day, folks would rather save time and money by getting their stuff online or at the mega-stores. i can understand wanting to save money, but this city is losing it's identity a little bit everyday. i remember coming into the city as a younger man and marveling at the amount of small, neighborhood businesses. pick a neighborhood now and you see more and more chains popping up. if dc wants to homogenize into the suburban hell that exists outside it's borders, then, by all means, don't do anything. if, however, they want to maintain their identity, they need to support local merchants of all kinds. it's entirely up to them. i can envision a day with no Olsson's, no Kramerbooks, no Politics & Prose, no Busboys & Poets. my wish remains that folks in the city won't let that happen.

 

i can envision a day with no Olsson's, no Kramerbooks, no Politics & Prose, no Busboys & Poets.

Apart from P&P, that's my idea of heaven. Because we certainly need more overpriced and understocked hiptard hangouts where you can listen to morons read their hospital charts and call it "poetry."

If local indie stores go out of business, it will be because the City Council taxes them out of business. Small businesses are dying downtown because they can't afford the rent, taxes, and red tape. It's not the chains' fault they're the only ones who can afford to open shop downtown.

 

As a former longtime Olsson's employee, this saddens me, too.

Here's an open secret, though: the chains won't be far behind. They're paying for thousands and thousands of square feet per store of the world's most expensive retail space to do what Amazon does for next to nothing: warehouse books. Does anyone really believe that's a sustainable business plan? Apparently the investors in these ever-expanding pyramid schemes (Starbucks, anyone?)do. But not for much longer. The chains will disappear and leave a vacuum in what's left of the literary culture of the cities they've decimated. Then there may be some room for independents--if anyone can live without an extra noodle shop.

 

Pffft. Like people read anymore. Unless it's on The Daily Show or printed on sugar packets, I say eff that noise.

 
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