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Bookland of Maine Files For Chapter 11
Judith Rosen -- 5/15/00
After closing four stores in March, the troubled Bookland of Maine bookstore chain filed for bankruptcy on May 4 to protect its remaining nine stores in Maine and New Hampshire.
Bookland president David Turitz was reluctant to characterize the details of the company's bankruptcy plans. "We're at the very beginning of what may be a lengthy process," he told PW. "Many of the stores on an individual basis are quite profitable. There's no reason they can't exist singly or as a small chain." He pointed out that the Bookland in Brunswick, Maine, for example, d s $5 million in sales. The Bookland in the Portland International Jetport is also profitable.
Turitz, who hasn't taken a salary since the beginning of the year, listed three goals for the bankruptcy filing: "First, maximize as much return as I can get for the creditors. Then, preserve as many jobs as possible. And thirdly, there are some good stores in good communities; so we must make sure those stores can exist. How we get there is largely out of our hands. The creditors will have to decide."
Bookland attorney Robert Keach, of Bernstein, Shur, Sawyer & Nelson in Portland, attributed Bookland's problems to " 'big box' competition that is beginning to move into secondary markets." He used the "e" word, noting increased competition from e-retailers such as Amazon.com. He also cited the expenses involved in a failed downtown redevelopment project in Portland, which was to have included a large Bookland store.
As for the future, Keach said, "We will look to market some stores on a going concern basis. Beyond that the plan is to retain a core group of at least six of the most profitable stores."
According to court papers, Bookland's debts are close to $8.2 million, and its assets are worth $7 million. It owes $2.6 million in secured debt to Fleet Bank, and K n Book Distributors is the largest unsecured creditor with claims totaling $520,298. Other book distributors with unsecured claims include Baker & Taylor, $186,175; Hudson RPM Distributors, $163,051; and VHPS Virginia, $115,323. Among book publishers owed money are Random House ($97,543) and Penguin Putnam ($83,075).
Bookland, which has 165 employees, opened its first bookstore in Biddeford, Maine, in 1973. It was an offshoot of the Portland News Co. founded by Turitz's father in 1926 to distribute books, magazines and newspapers.
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