Wednesday, December 03, 2003
MINNESOTA'S RUMINATOR BOOKS TO OFFER IPO
HERE'S THE SKINNY STRAIGHT FROM PW DAILY
"Ruminator Contemplates: If IPO Goes Bust, So Does Store
Yesterday financially beleagured Ruminator Books in St. Paul, Minn.,
sent good news and bad news to members of its e-mailing list.
The positive news: the Minnesota Department of Commerce has approved
Ruminator's plan for a public stock offering. As a result, the
bookstore may begin immediately selling stock to Minnesota residents
at $1 per share, with a minimum $250 investment. The Ruminator hopes
to raise between $450,000 and $1 million with the offering, which is
available only to state residents.
The bad news: if, by the end of January, Ruminator does not raise
enough money to "make the store well-stocked and vital," it will
close. Owner David Unowsky told PW Daily this morning: "It's pretty
clear that we have no choice. People have to understand that we have
plans. We have to raise the money. And if we can't raise the money,
we'll have to close."
The Ruminator has had serious financial problems for the past year,
which Unowsky attributed mostly to the losses incurred when its
satellite store at the Open Book Literary Center closed last March and
to competition from nearby chain and other bookstores, especially
Bound to Be Read Books, which opened a mile away from the Ruminator
two years ago.
This past fall the store used several creative strategems to raise
money. Two weeks ago, the Ruminator concluded a two-week online
auction of literary artifacts donated by prominent authors and other
store supporters. Ruminator marketing director Eve Marofsky called the
auction "successful. We considered it a success. We did not make
millions, but we made more than people think." Items ranged from a
vintage handkerchief from the 1950s, which sold for $10.50, to an
Edward Gorey illustration, which sold for $500. Unowsky told PW Daily
that the auction raised enough funds for the store to pay its monthly
rent to its landlord, Macalester College. "We're regarding the auction
as a rent party," he said.
Unowsky is also trying to sell the Ruminator Review. He has received
inquiries, he said, but none recently.
Unowsky also told PW Daily that even though only Minnesota residents
are allowed to buy stock, anyone outside the state who is "interested
in our future can contact me at the Ruminator. I have other mechanisms
by which people can participate in the effort to keep our doors
open."--Claire Kirch"
If anyone knows of a good way for booksellers to support Ruminator during this time, please email me at info@anthembooks.com
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"Ruminator Contemplates: If IPO Goes Bust, So Does Store
Yesterday financially beleagured Ruminator Books in St. Paul, Minn.,
sent good news and bad news to members of its e-mailing list.
The positive news: the Minnesota Department of Commerce has approved
Ruminator's plan for a public stock offering. As a result, the
bookstore may begin immediately selling stock to Minnesota residents
at $1 per share, with a minimum $250 investment. The Ruminator hopes
to raise between $450,000 and $1 million with the offering, which is
available only to state residents.
The bad news: if, by the end of January, Ruminator does not raise
enough money to "make the store well-stocked and vital," it will
close. Owner David Unowsky told PW Daily this morning: "It's pretty
clear that we have no choice. People have to understand that we have
plans. We have to raise the money. And if we can't raise the money,
we'll have to close."
The Ruminator has had serious financial problems for the past year,
which Unowsky attributed mostly to the losses incurred when its
satellite store at the Open Book Literary Center closed last March and
to competition from nearby chain and other bookstores, especially
Bound to Be Read Books, which opened a mile away from the Ruminator
two years ago.
This past fall the store used several creative strategems to raise
money. Two weeks ago, the Ruminator concluded a two-week online
auction of literary artifacts donated by prominent authors and other
store supporters. Ruminator marketing director Eve Marofsky called the
auction "successful. We considered it a success. We did not make
millions, but we made more than people think." Items ranged from a
vintage handkerchief from the 1950s, which sold for $10.50, to an
Edward Gorey illustration, which sold for $500. Unowsky told PW Daily
that the auction raised enough funds for the store to pay its monthly
rent to its landlord, Macalester College. "We're regarding the auction
as a rent party," he said.
Unowsky is also trying to sell the Ruminator Review. He has received
inquiries, he said, but none recently.
Unowsky also told PW Daily that even though only Minnesota residents
are allowed to buy stock, anyone outside the state who is "interested
in our future can contact me at the Ruminator. I have other mechanisms
by which people can participate in the effort to keep our doors
open."--Claire Kirch"
If anyone knows of a good way for booksellers to support Ruminator during this time, please email me at info@anthembooks.com
