Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, April 26, 1994 TAG: 9404260134
SECTION: BUSINESS PAGE: C-10 EDITION: METRO
SOURCE: By SANDRA BROWN KELLY STAFF WRITER
DATELINE: LENGTH: Medium
The petition seeks protection for the company from its creditors while it reorganizes its operations. It includes both the Blacksburg and Roanoke stores.
The company reportedly had been a shoestring operation for many months. Because it did not have sufficient cash flow, it couldn't keep a complete inventory, which created a Catch 22 situation for owner Richard Walters and the company's 23 stockholders.
Three creditors have filed for judgments in Roanoke Circuit Court against BS&T since February. They are BMG Music, which is seeking $21,934; Warner Elektra Atlantic Corp., which wants payment of $32,074, and Times-World Corp., which is asking payment of $19,872.
Walters, who opened a downtown Blacksburg shop while he was a Virginia Tech student, said last September that expansion to Roanoke was done more from "heart" than from "pocketbook" and had left investors with too much debt.
He said the renovation and stocking of the Roanoke shop cost $500,000 and put the business "right on the line" financially.
The two-story Roanoke shop anchors a corner on Roanoke's historic City Market and had been a popular attraction for both local shoppers and tourists. Before its inventory sunk, it was a popular hangout for book and music lovers.
"We all love Books Strings & Things," said lawyer Dutton Olinger of Blacksburg, who filed the bankruptcy. "We're hopeful that we can restructure a plan where the businesses can continue to operate and hopefully get back into a profit situation."
He said the stores got in trouble for a variety of reasons, including weather, competition and parking problems.
- Staff Writer Laurence Hammack contributed to this story.
by CNB