Isle book chain
seeks offers on
last store
But Honolulu Book Shops
By Peter Wagner
still hopes to emerge from
Chapter 11 bankruptcy
Star-BulletinHanging on by its last store, Honolulu Book Shops Ltd. hopes to survive with the help of a Chapter 11 bankruptcy reorganization. Meanwhile, however, the company is entertaining offers for its Ala Moana Center store.
"Our first choice is always going to be to keep the Honolulu Book Shops Ala Moana store because we've been there a long time," said Colin Miyabara, the company's president. "But on the other hand you have to leave the option open for a sublease or something like that to happen, if that's the way the situation turns out best."
The company, which filed for bankruptcy yesterday, hopes to have a reorganization plan in place by June or July. That will keep creditors temporarily at bay.
According to company attorney Harrison Chung, Honolulu Book Shops has more than $3 million in debts. The biggest creditor is the Bangkok-based Chirathivat family -- owners of the company -- owed $2.8 million. Also on the list of creditors are Watercress Associates Joint Venture, landlord at Pearlridge Center, owed about $160,000; Ingram Publishing Co, of Tennessee, owed about $140,000; D/E Hawaii Joint Venture, landlord at Ala Moana Center, owed about $84,000; and Bishop Square Associates, owed about $77,000, Chung said.
One option under consideration is handing the Ala Moana property to the creditors, Chung said.
"We're exploring the idea of basically spinning off the Ala Moana store, creating a new corporation for the benefit of the creditors who would own and operate the store," he said.
The 52-year-old book company began with a shop in the former Gump's Store on Alakea Street. At its height, it operated five stores: downtown, Pearlridge, Kailua Shopping Center, Hawaii Kai Shopping Center, and Ala Moana. First to close was the Hawaii Kai store, about six years ago. 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, BookEnds. That left just one store, at Ala Moana Center.
Honolulu Book Shops is owned by HBS Holding Co., a Hawaii company owned by Sam Andrews Ltd. Three of the four directors of HBS are members of the prominent Chirathivat family in Bangkok, Thailand. The fourth director is Miyabara.
The Chirathivats operate the largest department store chain in Southeast Asia -- Central Department Stores -- with sales of about $700 million last year.
Miyabara yesterday said Honolulu Books has suffered from big mainland booksellers. "I think it's proved nationwide. A lot of independents have had a tough time with the growth of superstores, not only in our industry but in hardware, sporting goods, music and other businesses."
But Chung said a recent $236,000 judgement against Honolulu Book Shops over delinquent rent at the Hawaii Kai Shopping Center pushed the company into bankruptcy.
