Twenty-nine-year-old Fairmount Books in Buffalo, N.Y., one of North America’s largest bargain book wholesalers, will shut its doors, possibly as early as March. “We are absolutely not going bankrupt, we’ll wind down over the next few months,” Fairmount founder and president Marty Cutler told PW. “The decision was very thoughtful. We’re doing this with integrity and professionalism.” Fairmount will pay all suppliers and employees in full.
Although Borders was an important customer, Cutler says that its closing wasn’t a factor in the company’s decision. Instead he views the bankrupt retailer as symptomatic of the problems facing bargain book wholesalers. “We’ve been watching the trends for the last 18 months,” says Cutler. “E-books have taken a chunk out of the overall economy. There are fewer independent bookstores and less space allocation in large stores and small for bargain. Publishers and booksellers are getting good at inventory control.” In addition, he notes that nonbook customers are also carrying fewer titles, often cutting out subject categories they once carried.
At its peak Fairmount had 40 employees and 25 commission sales reps. “We’ve always pressed the envelope. We were at the leading edge of radio frequency technology in our warehouse. I don’t think we’ve had too many missteps,” says Cutler. Now the company is in the midst of selling off its inventory. Every book on its Web site is discounted 70%, and 400 titles are available at 50¢ net.
Cutler hasn’t decided yet what he will do beyond serving as chair of the Crohn’s and Colitis Foundation and spending time with his grandchildren. “Being in the remainder side of things, one has to be very quick and nimble,” he says. “I’m going to reinvent myself.”
