BookSmart, formerly a cornerstone of the downtown Morgan Hill retail scene, has gained some reprieve on their eviction deadline as long as they adhere to a “very aggressive” schedule to pay several months’ worth of back rent, according to the store’s owner.
The book and toy store, now located at 1295 E. Dunne Ave. in east Morgan Hill, was served with a 10-day eviction notice on July 11 because they owed about $60,000 of unpaid rent (at about $7,500 a month) to the landlord.
After gaining some help from BookSmart customers after they were informed of the predicament, and reaching at least a temporary détente with the landlord, the popular family-owned store will get to stay open a little bit longer, according to Brad Jones, who owns the store with his wife Cinda Meister.
The owners and landlord agreed after July 11 that BookSmart will pay $8,000 toward the back rent every 10 days until they are caught up, Jones said.
“We made the first two (payments) through donations from our community,” Jones said. He specified that two different customers each paid a month of rent after they heard about BookSmart’s dilemma, which he called “amazing.” Jones did not name the donors.
“It makes you feel like the struggle is worth it,” Jones added.
But the store has yet to find a way to refinance a mountain of high-interest and short-term debt that will continue to devour BookSmart’s cash flow even if they get caught up on their rent payments, Jones said.
He set up a fundraising campaign on the website indiegogo.com to raise a goal of $20,000 to go toward these debts. But this campaign is “all or nothing,” meaning if they don’t reach the goal then no contributors will pay, the page explains.
The fundraising page, found at indiegogo.com by searching for “BookSmart Evolution,” lists other ways customers and contributors can help the store surmount its financial challenges: giving directly at the store; purchasing gift cards; and spreading the word.
As of July 21, the campaign raised $4,875 with 22 days left.
BookSmart has been in business for 23 years, mostly in downtown Morgan Hill. The store—which is popular not just for their merchandise but also as a café and community gathering place—had to move from its previous location on East Second Street last year to make way for redevelopment of the downtown property.
Moving expenses forced the owners to dig deep, “using credit cards, personal loans and cash advances” to pay for the relocation, the indiegogo website says.
Also last year, after they moved into the East Dunne location, the store created BookSmart Community Advantage, a nonprofit that promotes local culture and arts. Part of BCA’s agenda is a summer-long calendar of fun and educational workshops, art lessons, music classes and more, primarily geared toward children.
On July 29, BookSmart will host a party/fundraiser with entertainment, food, wine and prizes. They will display original artwork, much of it created by local children during previous summertime BCA classes at BookSmart. The event will go from 4 to 7 p.m.
To see more details about BCA and other activities at BookSmart, visit the store’s website, mybooksmart.com.
