Books Inc. Looks to Barnes & Noble for Lifeline Amid Bankruptcy

In a move that could mark both an ending and a beginning, beloved Bay Area bookstore chain Books Inc. has filed a motion in bankruptcy court seeking approval to sell its assets to a Barnes & Noble affiliate for $3.25 million.

The proposal comes as part of Books Inc.’s voluntary Chapter 11 reorganization, filed in January 2025. The company cited rising operating costs, shifting consumer habits, and the lingering impact of the COVID-19 pandemic as key contributors to its financial struggles.

A Strategic Sale with Familiar Precedent

This potential acquisition echoes a similar situation from 2023, when Tattered Cover, the iconic Denver bookstore chain, was sold to Barnes & Noble for $1.83 million after its own bankruptcy.

But unlike a full corporate rebranding, Books Inc. has emphasized that, should the sale go through, the stores will retain their independent branding and spirit. According to the motion filed with the court, Books Inc. will continue to operate under its own name across seven neighborhood locations and two stores at San Francisco International Airport.

(The company shuttered its Berkeley store in February and appears to have closed an additional location since.)

Preserving a Literary Legacy

CEO Andy Perham expressed optimism about the deal, stating:

“This agreement will ensure that Books Inc.’s legacy will continue for the foreseeable future. With Barnes & Noble’s deep resources and world-class support, Books Inc. will be able to quickly modernize its operations so we can focus on what we do best: connecting people with books, ideas, and each other.”

Meanwhile, Barnes & Noble CEO James Daunt echoed that sentiment, calling the chain “storied” and its locations “wonderful bookstores.” He added, “We are very pleased to ensure their continuity. We look forward to welcoming the booksellers of Books Inc. to Barnes & Noble.”

What Happens Next?

The motion now awaits a court review, expected to take place this fall. If approved, the transaction would give Books Inc. a much-needed path forward, providing stability while preserving the local bookstore vibe readers and communities have cherished for decades.

As more indie bookstores face headwinds in an evolving retail landscape, partnerships like this may signal a new model—one that blends corporate support with the soul of neighborhood bookselling.

Stay tuned as Books Inc. awaits its fate—and possibly opens a new chapter under the Barnes & Noble umbrella.