Honolulu Book Shops
filing for bankruptcy

Another kamaaina business
enters chapter 11

By Peter Wagner
Star-Bulletin

Honolulu Book Shops, which has operated a chain of stores in Hawaii for 50 years, plans to file for Chapter 11 reorganization bankruptcy today.

Harrison Chung, the company's attorney, said a $236,000 judgement against Honolulu Book Shops over delinquent rent at the Hawaii Kai Shopping Center pushed the company over the edge.

Honolulu Book Shops closed its store at Hawaii Kai and reassigned its lease to Aloha Futons in 1992. According to Chung, Aloha Futons failed to keep up with rent payments and was sued, along with the book store by HI Kai Investment Ltd and Marshall Realty Ltd.

The landlords won a $236,000 garnishment on Honolulu Book Shops assets. Chung said the company learned of the garnishment on April 16.

Honolulu Book Shops last year was operating four stores, at Ala Moana Center, Pearlridge Center, downtown, and the Kailua Shopping Center.

Hard times were apparent when stores were closed several months ago at Pearlridge and downtown at Bishop Square.

Three weeks ago, the company lost its lease at the Kailua Shopping Center and sold some of its inventory to a new store, called BookEnds. That left just one store, at Ala Moana Center.

Chung said recently the company would refocus its efforts to make the Ala Moana store profitable. It was not immediately known what will become of the store.

Chapter 11 bankruptcy is a process allowing a company to continue operating with temporary relief from debtors.