Olsson’s Goes Chapter 11

-- Publishers Weekly, 7/16/2008 7:35:00 AM

Olsson’s Books & Records, which last week filed a motion seeking to convert its Chapter 7 bankruptcy to Chapter 11, officially filed for Chapter 11 protection yesterday. The Washington, D.C. area chain listed assets of $929,428 and liabilities of $1.9 million in its filing. The store, which at one point had sales of $16 million, said it was forced to seek bankruptcy because of the weak retail economy, rising rents and taxes, increased competition and an accelerated drop in music CDs. In a statement, controller Terence McCann said: “There is a plan for Olsson’s to continue. It 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. We still think that Olsson’s has something to offer and can do business in this market.”