Co-Op future unsure

The Co-Op Bookstore closed the book on itself Nov. 8 when management finally locked its doors after years of financial hardship.

The sudden decision to close the bookstore resulted from a disagreement between the Co-Op and its management company. With an overwhelming $1.7 million mortgage, and competing online bookstores, the 60-year-old bookstore simply buckled under its own weight.

Last year, the store went into agreement with the consulting firm Business Management Concepts to provide immediate funds for the purchasing of textbooks and the daily running of the store. BMC purchased all of the Co-Op's inventory, with the agreement that the store would buy it back after five years and pay a monthly management fee.

The College played a part in the deal that the Co-Op struck with BMC. The College agreed not to open up a competing bookstore in order to secure BMC's investment.

According to the Oberlin News-Tribune, the consulting firm and the Co-Op recently had a disagrement about payment. The Co-Op board disputed the payment, and BMC filed a cease and desist order to halt the sale of any of the Co-Op's inventory.

The College considered assisting the Co-Op in its latest difficulties, but felt there were too many problems surrounding the situation.

"The legal and financial situation was so bad that it was not in the College's best interest [to aid the store]," said Vice President for Finance Andy Evans.

Co-Op management posted this statement on their front door: "The community has long been aware of the financial struggles of the Co-Op bookstore. The Board of the Oberlin Consumer's Cooperative regrets to announce that significant efforts to negotiate a smooth transition to another party were unsuccessful. We regret to announce that we are forced to cease day-to-day operations of the bookstore and focus on maximizing the value of our remaining assets on behalf of our employees and membership."

Although the statement seems to leave the door open for the Co-Op to restart business again, Evans doubt that will happen. Evans said, "There is a bit of a mixed message on that. My guess is that they are not going to open their doors."

The College plans on setting up a short term bookstore using College facilities to cover textbook sales for next semester. However, they will look into setting up a more stable and formal bookstore in the long-term.

As the Co-Op's statement indicated, the store's financial woes have been well documented in the past few years. The most direct cause of the Co-Op's financial difficulties has been its six-year-old building. The bookstore moved from its previous space, the current location of the Carlyle Shop, to its address on West College Street in 1993. The Co-Op Board constructed the building to coincide with the depth and height of the existing downtown buildings. Unfortunately, the size of the building did not fit the needs of the Co-Op as much as it did the aesthetic needs of the downtown district.

In September, former Co-Op Bookstore President Allison Gould said, "We knew right when we built it that it was too big of a building."

The bookstore has been in the red ever since they moved into their larger building, with $450,000 in losses last year. Evans said, "When you have a business relationship, you want both parties to be financially strong." According to Evans, the Co-Op only had $2.5 million in sales last year, which he called a "disaster" in light of their losses.

The Co-Op made a futile effort to save itself in late August of this year when it decided to rent out its second floor space. They hoped the College would offer to rent the space for its Conservatory students and faculty or art department, who are in need of extra room.

During October's College Faculty meeting, Evans said the College had no interest in renting the space. He explained that just as a landlord looks for a financially sound tenant, so too does a tenant look for a reliable landlord. In his judgement, the bookstore would be unable to make any necessary renovations to accommodate the College's needs.

The Co-Op's financial problems have resulted in higher prices through the years and garnered it a negative reputation among Oberlin students. Ironically enough, the Co-Op actually began in 1936 when unhappy Oberlin students organized a buying club to circumvent the more expensive area bookstores. In 1940, the state of Ohio chartered the Co-Op as a non-profit corporation.

Evans said, "It's my hope that everyone in the community will help see us through this and work towards the creation of a new bookstore."