Olsson's Files for Chapter 11 Bankruptcy Protection

On June 15, Olsson's Books & Records announced that it had filed for Chapter 11 bankruptcy protection in an effort to reorganize and return to profitability. Olsson's filing in U.S. Bankruptcy Court District of Maryland lists $929,428 in assets and $1,951,629 in liabilities.

A company statement noted that "the reasons for filing were a combination of the continuing weak retail economy, rising rents and property taxes, competition from large box stores and the Internet, and an accelerated drop in the music CD business."

John Olsson, the business' principal owner, explained that, "although the company has attempted to manage the situation to remain solvent, regrettably after considering all available alternatives, the company determined Chapter 11 was the best way to maintain operations while implementing a plan for successful restructuring."

Terence McCann, Olsson's controller, said the reorganization plan "involves raising working capital, seeking investors, reducing overhead costs, adding new merchandise, refurbishing stores, retaining leases where achievable, or relocating to communities that will support the concept of an independent bookstore."

Olsson's, which at one time had nine stores in the Washington, D.C. metro area, currently has five retail stores: Reagan National Airport, Alexandria, two in Arlington, and one in northwest Washington, D.C.

On June 28, the Washington Post reported that Random House, Penguin Group, and Hachette Book Group were seeking to have the U.S. Bankruptcy Court place Olsson's in involuntary Chapter 7 bankruptcy to force the company to liquidate.