September 07, 2005

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Palo Alto Online

New chapter for Kepler's?

by Andrea Gemmet

There's a chance that Kepler's Books and Magazines may be rescued in the final chapter.

The sudden demise of the iconic Menlo Park bookstore following Clark Kepler's short, emotional announcement last Wednesday reverberated up and down the Peninsula, prompting efforts to save what many consider the area's cultural hub.

According to Kepler himself, it might result in a new life for the 50-year-old bookstore founded by his father. "I'm entertaining qualified investors who are looking at saving Kepler's," he said.

Kepler said there are three investors who have stepped forward. He declined to name them, or give details about the magnitude of the bookstore's financial troubles.

"Daily and hourly, things are happening. Yesterday morning I first started getting these possibilities coming forward," he said Friday. "I think something is going to happen in the next few days or in the next week that will tell me what direction we're going in.

"Miracles started happening," he said.

Last Wednesday was a black day for local book lovers, a steady stream of whom had gone to Kepler's only to find locked doors and a posted sign announcing the economic downturn that began in 2001 that proved to be the business' undoing.

Many people reacted as though a perfectly healthy relative had suddenly, shockingly, dropped dead, and responded with tears, disbelief, dismay -- and occasionally, a spark of hope that, with community support, Kepler's could pull a Lazarus and rise from the dead.

David Johnson, Menlo Park's business development director, said in a press release, "Steps are being taken by city staff and others to investigate any possibility of resurrecting the business."

Among other efforts, Michael Closson of Palo Alto is circulating his e-mail address and soliciting suggestions, and a Save Kepler's blog at savekeplers.com went up almost immediately.

A few Kepler's employees even tried to think of wealthy locals who could serve as angel investors, said Andy Battles, an assistant manager at the bookstore for the past five years.

The community outpouring has been heartwarming, said Mr. Kepler, who stopped by the store the day after it closed and saw the messages of support and sorrow posted outside.

"It's humbling to hear that kind of support -- and it also gives me a sense of hope and enthusiasm," he said.

He added that "realistically, as much as I appreciate everybody's support, thousands of people contributing a little bit is wonderful, but it's not going to do it."

To all outward appearances, Kepler's was a thriving business with a national reputation, occupying a highly visible 10,000-square-foot store at Menlo Center on El Camino Real. Kepler's drew a steady stream of renowned writers and celebrities-turned-authors at readings and book-signing events, and had celebrated its 50th anniversary in May.

But from the inside, there were signs that the business was foundering, Battles said. Employee hours were cut last fall, and the company was occasionally overdue paying bills to its book distributor, he said.

In the days preceding the closure, the ordering department stopped ordering new inventory, an unannounced book sale was held, and a store-sponsored talk by Alan Alda set for Sept. 25 in the City Council Chambers was abruptly canceled.

High rents have also been blamed. Johnson, the business development director, said last year he unsuccessfully attempted to help Kepler negotiate with Menlo Center owners, the Tan Group, for relief "from an inordinately high 'pre-bubble' rent structure."

"In life, it's always all of those things," Kepler said. "At various times I was able to self-fund. I'm unable to do so any longer."

He said he is talking with the Tan Group again about reducing the store's occupancy costs. He signed a long-term lease in 1999 at the height of the dot.com boom, Kepler added.

In a press release issued Friday, the Tan Group said they "were stunned to hear that Kepler's Books had closed their doors. Contrary to the impression given by the media, on several occasions in the past we have worked closely with Clark Kepler in successfully navigating financial challenges."

Confirming meetings with Kepler, the release stated: "...We very much want to retain them ... (and) will continue our efforts to help the Kepler's legacy endure."

Andrea Gemmet is a reporter for the Almanac, the Weekly's sister paper in Menlo Park. Almanac reporters David Boyce and Rory Brown and News Editor Renee Batti contributed to this report.

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