One of New York City's best independent bookstores, Three Lives & Company, got a new lease on life last month when longtime owners Jenny Feder and Jill Dunbar sold the 23-year-old Greenwich Village institution to Toby Cox, a former marketing manager at Broadway Books, the Random House imprint.

Cox also had 10 years' bookselling experience at College Hill Books and the Brown University Bookstore, both in Providence, R.I. "It's amazing that we found a buyer," Feder told PW, adding that most independents must close when their original owners decide to leave.

Located in an 800-square-foot space on the corner of Waverly Place and W. 10th Street in Manhattan, Three Lives & Company has spent 16 years in this location and previous seven at space around the corner. Feder, Dunbar and a third partner (who left several years ago) were inspired by Gertrude Stein's novel when they were searching for a name for the store.

"We've always had phenomenal luck and good vibes and good will," Feder said. "We're lucky on our location and our huge clientele, which includes people in publishing, writing and editing. They've been so generous." This generosity has helped Feder and Dunbar stay at the forefront of literary tastes and trends. One of their customers loaned them the galley for Jane Smiley's The Age of Grief (Ivy Books). Raymond Carver brought in Jay McInerney for his first reading at Three Lives. There have been readings by Richard Price, Jamaica Kincaid, Laurie Colwin and others, arranged through personal contacts with authors, publishers and publicists who visited the store. "These people gave Three Lives credence," explained Feder. "They helped us learn and encouraged us to try different things."

Mixing It Up

Entering Three Lives & Company is like stepping into the living room of a close friend with a passion for literature. Burnished wood bookcases line the walls, filled with classics and current titles, mostly fiction, but also poetry, biography, art, architecture and travel. Sprinkled about the shelves are handsome used editions in bright jackets. A couple of tables feature current and past favorites that invite leisurely browsing. Behind the counter, two women companionably discuss upcoming appointments and events. They are aware of their customers, but do not interfere with private musings. Nevertheless, they gladly offer knowledgeable help when asked.

A year ago, Three Lives tried something different by changing its product mix to start including used books. "It was the most exciting development in 15 years," exclaimed Feder. "People love it. It has to do with the romance of the object. People want to own these books." Three Lives does not sell first editions or collector's items. Rather, inexpensive books are found at estate or yard sales, or through customer donations. Dunbar cleaned selected books, put protective plastic covers on them and placed them on the shelves. There is also a cart on the stoop by the door with a fast-selling selection of $1 books.

At Christmastime this past year, Three Lives took books with very little book-world value—10th printings or jacketless volumes—and grouped them by subject matter (such as "American Men," including books by F. Scott Fitzgerald and Ernest Hemingway). These books were packaged in threes, wrapped in ribbon and sold as gift sets for $7 to $11. "It was a big hit during the holidays among people looking for gifts," said Feder.

While trade paperback sales remain the lifeblood of the store, Feder and Dunbar preferred to sell old books. "We bought new books for 60% of the retail price and made 40%. We bought used books for $3 and could sell them for $20. There's a huge profit margin in used books," said Feder. Used books now account for about 20% of their sales.

Business—and profit margins—grew over time. When they decided to change wholesalers about five years ago, they began a relationship with Koen Book Distributors on a C.O.D. basis. Paying their debt down to nothing, they eventually carried little or no overstock. "As a result, we were significantly more profitable," explained Feder.

Three Lives was also blessed with a landlord who wanted the space to remain a bookstore and kept the rent reasonable, despite the pressures of a booming Manhattan real estate market.

In an age of competition from superstores and Internet retailers, Three Lives managed to succeed. "What distinguishes this store is the feeling of life," said Feder. "No, we don't have everything. But we don't have to have it. We're a vibrant, viable magnet to our customers. People still long for an experience that affects the way they feel and think. Bookstores are a perfect way for people to get this."

Time to Go

A variety of factors led Feder and Dunbar to their decision to sell. Two longtime staff left—one to be a writer and the other due to serious illness. Feder and Dunbar were planning to move into a new residence, leaving the Village for SoHo. With all these changes, "It felt like it was time to leave," said Feder.

Last fall, soon after their decision was made, Dunbar had lunch with friend Toby Cox and asked if he'd be interested in buying the store. Cox had first walked into Three Lives four years earlier. "I thought to myself, 'This is the store I'd have if I could have my own bookstore,'" he told PW. He was able to find additional investors and put the deal together with Feder and Dunbar. Cox is the sole owner/manager working in the store, with the other investors remaining silent partners.

"I want to maintain the sense of community and passion that you feel when you walk in. People want that experience," said Cox about his goals. He will explore ways to expand that experience and to make it more available to customers, possibly by further developing the store's Web site (www.threelives.com). Fortunately for him and Three Lives' customers, Feder and Dunbar will assist Cox during the transition, and the bookselling staff plans to stay on.

Cox did not go into this venture without a realistic idea of what is going on in book retail. "It's an interesting time for independent bookstores," he explained. "The ones that survived the superstores and the Internet are stronger for facing those challenges. I believe there's a place for independents. People want to come and meet authors and other readers. They want a place to share and talk about books, or to quietly browse."

In their new lives, Feder will devote more time to creating sculptures, and Dunbar plans to become a literary agent. "What I'll miss the most is opening the cartons that arrive full of books. It's like Christmas every day," said Feder. "The biggest luxury will be to not have to read the New York Times Book Review every Sunday. I'll let them stack up," she added, laughing.

Twenty-three years ago, Susan Sontag gave the inaugural reading at Three Lives. On February 1, poet Mark Doty read from his memoir, Still Life with Oysters and Lemon (Beacon Press), at the final event hosted by Feder and Dunbar. But there is a strong sense that a new life for Three Lives is beginning, with many new (and old) books to fill the shelves, and many more readings and customers to come.

"I feel that it's an honor to take on the store with such a following and such loyalty. It's a dream come true," said Cox.