Publication Date: Friday, April 20, 2001
Time running out for Printers Inc.
Time running out for Printers Inc.
(April 20, 2001) MV bookstore may close April 30
By Jaime Bloss
The bookshelves are sparsely filled, many of them nearly empty. The phones have been turned off. Although customers still fill the upstairs café and browse through the slim stacks for reading material during lunchtime, the future appears grim for Printers Inc. If the owner cannot find a buyer or an investor soon for the independent bookstore, which has been a staple in downtown Mountain View for more than 15 years, it will permanently close its doors April 30.
But there may still be hope. Aaron Brown, general manager of the Palo Alto and Mountain View stores, said he has a lead for a buyer interested in the Mountain View location, but did not want to discuss any details prematurely.
At this point there are no leads for the Palo Alto location, he said.
If it attracts an investor, Printers Inc. would probably stay in business, operating as it has since 1986 in Mountain View and since 1978 in Palo Alto. However, a buyer could bring in an entirely different company or business altogether.
Brown said his first priority is to try to find a new investor and save Printers Inc. The store could double the inventory it currently has in stock in four days if a new investor were found. If that can't happen, he would like another bookstore to take over the location.
@lethead:A failure to adapt
Printers Inc. has encountered increasing difficulties over the past year. Its problems began approximately five years ago with the company's failure to react to changes in the book retail industry, said Brown.
"Changes needed to be made and they weren't," Brown said. "The previous owners weren't up for the fight and they sold it."
Matthew Duran, the current owner and the former controller for the company, bought the business two years ago from Gerry Mastellar and Susan MacDonald.
Since August 2000, the company has tried "to pull out of the tailspin," Brown said. The stores reduced their inventory by 25 percent in order to pay their debts to vendors. "That didn't go over well with the customers," he said, but noted that books that had been on the shelves for three years hadn't been purchased.
Adding to the company's problems, Crown Books filed for Chapter 11 bankruptcy after the holidays. Under the bankruptcy agreement, "their past debts are reduced to between $.20 to $.25 on every dollar they owe (to vendors)," Brown explained. In turn, the vendors, publishers, and distributors requested that Printers Inc. pay its past debts immediately.
Although Duran and Brown would not disclose the amount of the company's debts, Brown hinted at the amount of money owed, saying it was less than the amount that most people pay for a house in the Bay Area. "What do they go for? Over a million dollars?" he asked, implying it was less than that amount.
Because the company has not been able to pay, it has not received inventory shipments for 45 days, Brown said.
One of Printers Inc.'s most appealing qualities - its wide selection - may also be one of its chief weaknesses. "People want to see (a big selection), but they don't want to buy it," Brown said. "It's one of the reasons we're not making money.
Another important mistake the company made was keeping a large staff, he said. "We continued to keep people on the payroll as though we were one of the biggest players in town. . . but our operation wasn't that large anymore," Brown explained. The money that went toward payroll could have been used to pay off debts, he said.
The staff has been cut considerably over the past eight months. In August 2000 approximately 80 employees worked for the company; Brown estimated that the number is now down to 40.
@lethead:A place to meet
Brown and Duran described the stores as a focal point in the community - a local "hang out" spot, a place to socialize, even a place to meet potential dates.
"Obviously they don't want our books," Brown jokingly said of the customers. "They're here because of that (social) dynamic."
Lars Olsen, who has been a Printers Inc. customer for eight years, said it would be "a great pity" to see the store close.
"I like the atmosphere and the café. It's a great place to browse for magazines; I buy my foreign newspapers here," Olsen said. "It's refreshingly different from chain stores. I hope they stay in business."
Brown said the company will find out next week if the buyer is interested.
@lethead:Anchor on Castro Street
Mountain View's Printers Inc. was the first project funded with seed money by the revitalization district to attract more people to the downtown area, said Ellis Berns, the city's economic development manager. The company received a loan of $150,000 in 1985, which it paid back in full, Berns said.
Because Printers Inc. has been an anchor store in the downtown, Berns said it would be hard to predict the effect of its closure. Additionally, the city "would have concerns because we'd hate to have the space vacant," he said.
Council member Rosemary Stasek said that although the downtown area is doing well right now, it could be seriously affected if Printers Inc. closed its doors.
"Printers Inc. is something that draws people to the downtown," she said Wednesday. "It's what people think of when they think of downtown Mountain View. It's something more than just another bookstore or just another coffee shop downtown."