Knoxville Used Bookstore to Close Following Property Sale Amid Labor Dispute

A longtime Knoxville bookstore is preparing to close its doors after four decades, following the sale of its property to a hotel developer, a move that has sparked controversy amid an ongoing union dispute.

McKay’s, a regional chain of used bookstores with locations across Tennessee and North Carolina, confirmed that its Knoxville store will shut down in May. The property was sold for $4.25 million to a development group planning to build a hotel on the site.

The Knoxville branch holds a unique distinction among McKay’s five stores: it is the only location where employees have unionized. Workers voted to join the Communications Workers of America (CWA) in November 2022 and have since been negotiating their first contract with management.

Union leaders argue that the timing of the sale raises serious concerns. CWA representatives have requested that the National Labor Relations Board seek an injunction to halt the transaction, alleging the closure amounts to retaliation against unionized employees.

Store owner Sam Jacobson has strongly denied those claims, stating that the sale was driven by business considerations rather than labor issues. In comments to local media, Jacobson described the decision as the result of evaluating property value, development opportunities in the surrounding area, and the long-term direction of the company.

Union leadership, however, remains unconvinced. Local CWA officials have pledged to continue pursuing action, insisting that the workers’ organizing efforts should not be undermined by what they view as a strategic closure.

The Knoxville store has been part of the local literary landscape for 40 years, building a loyal customer base and becoming a fixture in the community. As the closing date approaches, the dispute highlights broader tensions facing independent and regional booksellers navigating shifting real estate markets, labor movements, and evolving business pressures.

Whether the closure ultimately becomes a legal flashpoint remains to be seen, but for many readers and employees, it marks the end of an era for a bookstore that shaped generations of local book lovers.