McNally Robinson booksellers emerges smaller and wiser from bankruptcy protection

McNally Robinson Booksellers, one of Canada's largest magazine and book stores, has emerged from bankrupty protection with two stores instead of four and chastened by business decisions that nearly put them over the edge. The company's bookstores in Saskatoon and Winnipeg's Grant Park shopping centre are open for business and continue to employ about 250 people.

Owner Paul McNally said in a story on CBC.ca that the court supervision and reorganization was "punishing and very emotional"

"It involved terminating a lot of employees and as you surely know, is deeply emotional and painful. A lot of money was lost."

The company, which was founded in Winnipeg in 1981, had to let go 175 people and close a Winnipeg store at the Polo Park shopping centre and one in Toronto at the Shops at Don Mills, which only opened last April. "It was clear from the opening sales at Don Mills that we had entered into a death spiral." said McNally, acknowledging it was a big mistake; it was opened in the wrong location and the wrong time and ended up being one of the biggest reasons the company suffered such significant losses -- more than $2 million in the 2009 financial year.