Isle book retailer
down to one store

Honolulu Book Shops is also
selling its headquarters

By Peter Wagner
Star-Bulletin

Honolulu Book Shops Ltd. has closed its Kailua store, the third closing in three months, leaving a single location at Ala Moana Center.

While the struggling bookseller plans to refocus efforts at Ala Moana, its future is far from certain.

"The book shop is doing everything possible to make money and stay in business at Ala Moana," said Harrison Chung, the company's attorney.

He noted the Ala Moana store is increasing its inventory and planning new promotions. But bankruptcy could be around the corner if the 50-year-old company can't find its feet in the next few months, Chung said.

"A Chapter 11 reorganization is something you always consider when sales decline," he said.

The company, which had operated at Kailua Shopping Center since 1984, lost its lease two weeks ago. Fearing the company might seek protection from creditors under bankruptcy, landlord Watumull Investment Co. abruptly canceled the store's month-to-month lease on March 31.

A new locally owned book store, "BookEnds," opened two weeks ago at the former Honolulu Book Shop location in Kailua after buying some of the store's inventory.

Meanwhile, Honolulu Book Shops continues to shrink.

Chung said the company plans to sell its 7,000 square-foot headquarters and warehouse in Kalihi. The fee-simple property, at 287 Kalihi St., includes a two-story building with 5,000 square feet of warehouse space and 2,400 square feet of office space.

"The company doesn't need a big office space," he said.

The company is also looking for tenants to take over its leases at Bishop Square and at Pearlridge. The downtown lease expires in September while Pearlridge has several years remaining, Chung said.

Honolulu Books, which began about 50 years ago with a downtown store, has suffered in recent years with the arrival of mainland book giants Borders Books & Music and Barnes & Noble. Also taking a toll have been cost-cutting outlets like Costco and Sam's Club.

Betty Santos, former manager at the Honolulu Book Shops' Kailua store, says the company underwent many changes during its long career. She recalled the first Honolulu Book Shop, located at the former Alexander Young Hotel on Bishop Street.

"There was a little art gallery in front of the store," she said. "There were chairs. And a lot of old Kamaaina families would have accounts there."

Now Honolulu Books, like many other struggling businesses, is looking for a way to survive.

"It's just a matter of putting together a lean and mean operation," Chung said.