Open Book Co-op Out of Business
It’s never good to see a Wisconsin business close, but…
Open Book, the bookstore co-op that opened in Shorewood last fall, will close by April 30, the store’s directors said Friday.
The shop opened in November in the N. Oakland Ave. space previously occupied by a Harry W. Schwartz Bookstore. The organizers raised money from local residents and also secured a low-interest, $35,000 loan from the village.
Organizers cited “a confluence of events” for the closing, including the economy, a change in the public’s book-buying habits and strong competition from online booksellers.
“We had an expectation that we would have a much more robust holiday season than we did,” said Keith Schmitz, chairman of the Open Book co-op.
...seriously… what about the book industry has changed in six months? The economy is about the same if not a bit better than it was when they opened. Online booksellers, reading devices like a Kindle, and people’s book buying habits have been on this trend for quite some time. The market hasn’t substantially changed. It looks like the organizers here had some sort of fantasy that they could buck the trend and didn’t have enough capital to give themselves enough time to build a customer base.
I think it was Mr. Schmitzs lack of planning, and lack of mathematical aptitude that led to the demise….
Although something tells me he will blame G.W…...
One thing I can’t help but wonder though….
What exactly did Keith and the other organizers lose in this venture?
It seems to me the only people who are losing are the people who bought memberships, into this glorified LLC/Co-op and the taxpayers of Shorewood. -Although Keith says they will be paid back, I will believe that when I see it…..
Posted by Michael J. Cheaney on March 20, 2010 at 1248 hrs
Agreed. It was the same “confluence of events” that forced Schwartz to close. And Audubon, and nearly every other locally-owned bookstore.
Posted by .(JavaScript must be enabled to view this email address) on March 20, 2010 at 1301 hrs
I give them credit for trying.
Could it be the free, socialistic libraries paid for by government that sent them packing?
Posted by .(JavaScript must be enabled to view this email address) on March 20, 2010 at 1338 hrs
I think you have it right, Owen. Insufficient business plan probably backed by insufficient capital and, who knows(?), maybe a little insufficient execution mixed in. A disappointment for those involved, for sure, but not a “bad” story ... just the way capitalism works. In many cases, the operators of the failed business learn a lot, and come back to try again in the future with a better plan.
Posted by .(JavaScript must be enabled to view this email address) on March 20, 2010 at 1425 hrs
In many cases, the operators of the failed business learn a lot, and come back to try again in the future with a better plan.
One of my very favorite things about capitalism. Bootstraps baby!
Posted by Mike on March 20, 2010 at 1502 hrs
Could it be the free, socialistic libraries paid for by government that sent them packing?
Probably not. As I recall, the Downer location which is now Boswell Books grew from an old private lending library. Places with a lot of book purchases also tend to use the library a lot.
Milwaukee still has one of the least expected bookstores in the nation—its wonderful used bookstore at the airport.
Posted by .(JavaScript must be enabled to view this email address) on March 20, 2010 at 1738 hrs
Video stores, CD stores, book stores…all are on the way out, and all have one common thread to their demise.
You used to have to drive, park, walk, browse, continue to browse, ask a minimum wage employee for help, browse, pay, walk, and drive back home. But now ,they’re all just a click away from your sofa or handheld device.
Posted by .(JavaScript must be enabled to view this email address) on March 21, 2010 at 0937 hrs
There is clearly a niche for brick and mortar book sellers though. Sometimes you want something right now, or need a gift, or you happen to be out and about when the urge to shop hits you. It’s also nice to be able to ask questions of a competent staff member when you don’t know what you want. Some places sell coffee and bakery to draw you in… another fine thing.
Obviously, it’s not an easy business to get into though… you have to have a solid business plan and sufficient capital to carry you through till you generate a profit. You also need to fill that niche very effectively, or people will simply go elsewhere. Never having been to the place (it went under too fast for me to have a chance to visit), I can’t say what it was that they lacked, but clearly the store was opened with unrealistic expectations and insufficient capital. Who’s on the hook? Looks like taxpayers are.
This is the reason that government should not get involved in business. If the group was unable to secure a bank loan, that should be an indication that the investment was poorly put together. I’m guessing that there were some connections between the the book shop organizers and the board. I certainly hope that the city arranged to be paid back it’s money in the event that the store was a flop though…. please tell me that they insisted on collateral and on being placed at the top of the list for repayment. In any case, it’s fiscally irresponsible for a unit of government to support one business over another and risk tax payer money to help out it’s “friends”. The level of cronyism that I often see coming out of that village just stinks to high heaven.
Milwaukee still has one of the least expected bookstores in the nation—its wonderful used bookstore at the airport.
Always worries me when I agree with liberals, but FL has a great point. The Renaissance Book Shop (I believe that’s the name) has been in business forever. It’s a real gem for those who need a little something to get them through the flight. I’ve seen other similar used bookshops in other airports, but not to that extent. They have been around as long as I can remember too. Perhaps the Shorewood book folks should get a job there and see what Renaissance is doing right.
Posted by .(JavaScript must be enabled to view this email address) on March 21, 2010 at 1033 hrs
I agree that the bookstore in the airport rocks. I visit it every time I go through the airport and quite often end up buying a book. I would note, however, that the store has a relatively captive audience of people who often have time to kill.
Posted by Owen on March 21, 2010 at 1044 hrs
The problem with the Schwartz bookstore spin-offs was the inventory IMO. I’m not a big bookstore guy but I went in the Mequon one at Christmas to find some gifts. It seemed like the inventory of speciality non-fiction books was about 1/3rd of what the prior owners had.
And the selections of books there seemed to be “cut-out” bin type type books that the owner may have gotten very cheaply. There just wasn’t that inventory of top tier books that I had been used to. So my purchases were very limited that day and I am not enthusiastic about returning.
This is just an industry in transition. Unfortunately sometimes better for creative destruction to take place and move on to the next thing.
Posted by .(JavaScript must be enabled to view this email address) on March 21, 2010 at 1140 hrs
Smile don’t you know every time a lefty run business dies an angel gets its wings The fact that it was Keith’s Lefty business just makes it extra special
Posted by .(JavaScript must be enabled to view this email address) on March 21, 2010 at 1217 hrs
I disagree Lenny. No true lefty would ever condescend to believing in angels, and much less to allowing religiously oppressive non-corporeal apparitions to derive some benefit from the demise of a proletarian endeavor.
Heck, there are really only three businesses the far left cares for at all; Federal, State, and Local Government.
Posted by .(JavaScript must be enabled to view this email address) on March 21, 2010 at 1242 hrs
No biggie. (the issue not Schmitz).. Keith can always sell fruit juice or 8 track tapes on the Capital Square.
Maybe he could take the high-speed rail from Shorewood to the Capital.
Leftists are idea-men.Posted by .(JavaScript must be enabled to view this email address) on March 22, 2010 at 1315 hrs
It’s sad to read about this shut own.
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http://www.autism-pdd.netPosted by .(JavaScript must be enabled to view this email address) on March 22, 2010 at 1744 hrs
I wonder if i can get some conservative authors books on deal. oh yea silly me they probably dont have any.
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