The independent trustee appointed to sell 23 Indigo bookstores last fall was unable to find a buyer by the January 8 deadline, and as a result the stores remain the property of Canada's largest bookstore chain. "We would have preferred to see these stores sell, obviously," said Robert G. Lancop, assistant deputy commissioner of the Competition Bureau, Mergers Branch. "But," he told PW, "there are many other provisions in place to protect and promote competition to make for a much healthier, more stable industry."
After the new Indigo chain could not meet a three month deadline to find a buyer, the stores were handed over to an independent trustee, Richter & Partners Inc. While Richter said several parties expressed an interest in acquiring certain store locations, no formal offers were received. Richter canvassed domestic and international markets in search of purchasers, contacting 288 parties regarding the divestiture.
"General market conditions and restrictions on foreign ownership of retail bookstores in Canada made it difficult to secure a buyer for the stores," said Peter Farkas, senior vice-president of Richter & Partners. "Tighter capital markets, brought on by the recent economic downturn, acted as a further barrier to entry."
It was unclear at press time what Indigo will do with the returned outlets. An Indigo spokesperson could not be reached for comment, but the company has suggested in the past that it planned to close underperforming stores. Should Indigo decide to close any stores, it is required under the consent order to provide publishers with 60-days notice. It must also make its best effort to place the books from the closing stores into other stores.
