Canada's McNally Robinson Files for Bankruptcy

Canadian independent bookseller McNally Robinson has declared bankruptcy and will close two of its four stores immediately: one in Polo Park in Winnipeg, and their new Toronto store. As a result, 170 of the bookseller's 425 full- and part-time employees will lose their jobs. Co-owner Paul McNally says that as long as the company's bankruptcy plan is approved, the other two stores in Winnipeg and Saskatoon will remain open. "They make money," he said. "They have a loyal following," while the "new stores absolutely did not perform."

The company intends to restructure and emerge from the bankruptcy as a smaller company, comprising the e-commerce website www.mcnallyrobinson.com and the wholesale division Skylight Books, as well as the two remaining stores.