Book Stores and the economy -- Northern Lights Bookstore to close

[alfreda89]

Note that the bookstore had several serious offers, but people could not get the financing together in time. Is this part of the finance industry sitting on the money instead of starting to loan it out again?

I actually thought of a way to keep bookstores open. But it would take financing -- few could start it up on their own.

http://www.publishersweekly.com/pw/by-topic/industry-news/bookselling/article/45578-northern-lights-are-going-out-in-january-.html?utm_source=Publishers+Weekly%27s+PW+Daily&utm_campaign=97b75d8ee2-UA-15906914-1&utm_medium=email

Comments

[mouser.livejournal.com]

Serious offers *have* financing. Offers without financing are not serious.

Most likely they are from people that would like to run a bookstore but forget it's a business before it's a way to get your hands lots of cool books.

Just as a SWAG, the only way to really make a serious go at something like this is to already own a building outright. Leasing and mall space are for the chain sellers.

[alfreda89.livejournal.com]

I imagine she had a lot of offers like that, too. But there apparently is a bottleneck on financing -- it's part of the reason no one is hiring. No one is expanding or ramping up right now, they are already spooked and the bank stalling on loans means they aren't trying, or aren't getting anything if they do try.

Owning a building would indeed be ideal. But that's unlikely in any city right now. People who own commercial property aren't going to start bookstores, unless they want the loss against something else. I know someone who could guarantee three years of rent to a building owner, but the owner went for half the money to allow a bank to expand. The word guarantee still wasn't enough.