Thackeray's Books, a popular West Toledo independent bookseller for nearly 22 years, will close its doors in May, a victim of expanding competition and rising costs.

One of the competitors contributing to the retailer's demise is Ann Arbor's Borders Group Inc., which will open a book and music superstore at about the same time in nearby Westfield Shoppingtown Franklin Park.

Borders, which has supplied the inventory of Thackeray's since it opened in the Westgate Village Shopping Center in April, 1983, is interviewing Thackeray's 29 employees for jobs at the Franklin Park superstore and will give them first priority on openings.

Borders also will honor gift certificates issued by Thackeray's, which plans to return inventory rather than have sales or markdowns before closing.

"This was the hardest decision I've ever had to make," said Clyde Dilley, 73, Thackeray's president.

The store has five co-owners, though Mr. Dilley, a retired University of Toledo professor, is the principal owner.

"We've had a good relationship with the people of this city and with Borders, but we've reached a critical point," he said.

Barry Bagels owner Barry Greenblatt, whose restaurant is next to Thackeray's, said Westgate is bound to lose some shopper attraction when the bookstore closes.

"I was sort of hoping it was a bad rumor," he said.

"Our customer and Thackeray's customer are the same customer," he said. "We feed off of them and they feed off of us. How do you replace a draw like Thackeray's?"

But for the last five or six years Thackeray's annual sales have been flat, Mr. Dilley said.

He didn't provide last year's sales, but the company told The Blade its sales in 2002 were about $4 million.

Thackeray's, known for its book signings with famous authors, storytime readings for children, and community events, such as parties for the launching of Harry Potter books, had been losing customers to rivals, other retailers that carry books, and Internet retailers like Amazon.com.

"We had very good customer loyalty, but customer loyalty only goes up to a point," said Diane Routson, one of Thackeray's owners and the store's manager.

While sales have been flat, competition has been growing and expenses have been rising, Mr. Dilley said.

Besides Borders, the Books-A-Million chain is opening a store in Perrysburg.

Barnes & Noble, another national chain, opened a 25,000-square-foot chain a few miles from Westgate and across from what was Franklin Park Mall in 1994.

"We're not losing money, but it's close," Mr. Dilley said.

"What it came down to was a choice between a quick death or dying slowing. As a business, I think it's worse to die slowly.

"I just decided that now was the time to die quickly," Mr. Dilley said.

Customers were stunned.

"I'm not happy to hear this," said Jennifer Bevington of Ottawa Hills.

"I come here all the time with my son. We have to go to Barry Bagels, and then Thackeray's for stickers," she said. "We make it an event before bedtime."

Paula Hernandez of Toledo said she shops Thackeray's for its variety.

"They have everything here. I'm going to miss it when it goes," she said.

Prompting the decision to close, Mr. Dilley said, was Borders' arrival and an opportunity for Thackeray's workers to get new jobs if they desired.

The closing will leave Fireside Books in Springfield Township as the last independent general bookstore in the area.

Vincent Altruda, president of Borders, was at Thackeray's yesterday to announce Borders' plans and to oversee job interviews, which began immediately.

Thackeray's one store has about 13,000 square feet. The new Border's will be 20,000 square feet.

It might seem that Thackeray's and Borders, which operates 460 superstores and an additional 700 Waldenbooks outlets in the United States, would have little in common.

But the two have a relationship dating to 1983 when Borders had just one store, Mr. Altruda said.

Borders since has expanded nationwide and internationally, but Mr. Altruda said the company has never wanted a store in Toledo out of respect for Thackeray's.

It would not be building a store now, he explained, if Westfield Shoppingtown hadn't sought a book and music superstore for its $113 million expansion and contacted the Michigan retailer.

"If we didn't do [a deal at Franklin Park], somebody else would have," Mr. Altruda said.

Any new book store at Franklin Park likely would have sealed Thackeray's fate, Mr. Dilley said.

Mr. Altruda warned Mr. Dilley 18 months ago that Borders was considering Franklin Park.

Borders, which had $3.7 billion in revenues last year, had just one store and operated a wholesale business when Thackeray's got started.

Mr. Dilley said he mulled Thackeray's future the last year and decided Jan. 23 to close and tell employees.

The store's long-term lease with Westgate expired in 2003 and it has been on a day-to-day lease.

Owners of the Westgate center, Abbell Credit Corp. of Chicago, did not return calls yesterday seeking comment.

By hiring Thackeray's workers, Border's will retain some loyalty from customers and have a knowledgeable staff.

Plus, the Borders president said, both businesses treat book buying as an experience.

"We like to say we want our stores to have a soul," Mr. Altruda said. "Well, the soul of any store is its people, so, in a way, we hope to preserve the soul of Thackeray's."

Mr. Dilley said Thackeray's had opportunities to expand, but that was never his goal.

He wanted to start a good bookstore for the community, provide a nice place for people to work, and maybe make some money too.

"I'm not a businessman," Mr. Dilley said. "Treating this like a hobby instead of a business was probably my mistake."

Contact Jon Chavez at:

jchavez@theblade.com

or 419-724-6128.

First Published February 1, 2005, 1:07 p.m.