The Book Worm in Powder Springs, Ga., officially began selling shares last weekend as owner Susan Smelser continues the process of transforming her independent bookstore into a cooperative business model.
Smelser, who announced her plans to go co-op back in March, said it has taken much more work than expected, almost all of it involving legal matters. She and her interim board of directors have been busy creating things like the co-op's bylaws, disclosure statements and membership agreements, while making sure it's all above-board.
She reported that since March, she and her associates have gotten around $70,000 in pledges, and now they are in the process of getting back to everybody who pledged over the last five months. She added that her original plan has largely remained the same, except she has lowered the cost of becoming a full shareholder from $1,000 to $500, and, due to certain legal restrictions, can sell shares to people only in the state of Georgia.
Smelser, who plans to retire from bookselling by the end of the year, has a self-imposed deadline of October 1 to sell the store's 500 shares. Should it all work out, the shareholders will be buying the store and all of its inventory, while leasing the building from Smelser. Looking ahead, she said she would likely come up with a plan for the cooperative gradually to buy the building from her.
Over the next few weeks, Smelser and her shareholders will continue trying to get the word out and will look into launching a crowdfunding campaign. She reported being surprised that it isn't just avid readers who have gotten involved. Around half of her board, she said, are more interested in having the opportunity to "literally own a part of the community."
Smelser noted that other indie booksellers have expressed interest in her push to go cooperative, and she said she hopes her efforts can serve as something of a guide. To that end, any booksellers interested in seeing the co-op's documentation or asking questions can reach her here.