Layoffs

Indigo Books & Music Inc. has just laid off an unspecified number of staff. Company spokeswoman, Melissa Perri, shared a statement with The Canadian Press in early January, “While it is a difficult decision to part ways with valued and talented employees, it is the right decision for our company and all those we serve.” Perri went on to explain that the cuts stem from the company’s strategic plan meant to return the business to profitability.

Indigo has seen several quarters of loss as of late, and it seems that part of that “strategic plan” includes letting some employees go and closing stores.

It should come as no surprise that unionized Indigo members have increased their voice as of late, stating, “The retailer has made things increasingly difficult for workers.” In addition, for the past month, employees have been picketing the closure of the Chapters store at Kennedy Commons in Scarborough, Ontario. It’s union shared that the store’s 30 staff were not being offered other positions within the company.

This fall, Indigo’s founder, Heather Reismam, came out of retirement to take over from Peter Ruis in order to help steer the company she created back into profitability. Reisman had orchestrated an exit and stepped down as CEO in the fall of 2022. However, Ruis, her replacement, suddenly left the company in September 2023, after less than one year in the position.

Ruis’ abrupt departure seemed to come as a surprise. However, it was part of a trend of recent leadership changes for Indigo, for which the company has offered little explanation.

Andrea Limbardi, Indigo’s former president with over two-decades at the company has also departed. In total, four board members resigned from Indigo in June 2023, with director, Chika Stacy Oriuwa’s citing, “mistreatment” and a “loss of confidence in board leadership” as reasons.

Retail analyst Bruce Winder told Global News, “That while it’s not clear what conversations are happening behind the scenes at Indigo, the flurry of departures with a lack of explanation ‘sends signals that the company is sort of in a bit of a chaotic state right now.’”

From “hate-crimes” to cyberattcks; the hits keep coming

As reported by The National, in November, Pro-Palestinian protestors vandalized a Indigo store in Toronto, splashing it with red paint and accusing the CEO of “funding genocide.” This incident was investigated by the Toronto Police, and several individuals, including at least four staff members from York University, were charged with hate-motivated mischief. Reisman and her husband, Gerry Schwartz have shared that they are “passionate advocates for Israel”. In 2005, the couple founded the HESEG Foundation, which provides study scholarships for foreign soldiers who served in the Israel Defense Forces.

Last year, the company was hit with a cyberattack that took down Indigo’s website, took past and present sensitive employee data, including social security numbers. The company stated that it was working with both Canadian and US police forces in response to the attack, however, it decided to not pay the ranson, as it would have been “inappropriate” to do so. Unfortunately, that personal data was leaked on the dark web.

In addition to all of these set backs, Indigo is struggling to keep up with mega book seller Amazon, who has all but dominated the book selling market. Barry Schwartz, CIO with Baskin Wealth, recently shared with BNN Bloomburg,  “They’re in trouble. Indigo can’t defend itself against Amazon.” He went on to express that Indigo doesn’t have that the right business model to compete against the tech giant.

Would you like a coffee, pastry or Sex Toy with that book?

At this point in our “story” one would start to wonder if something sinister was happening. If this was a book, and it was a fiction story at that, readers would now be introduced to the “evil character”, who has cursed the beloved book-seller. As such, the next part would typically have “a hero” emerge out of the shadows, in order to defeat evil and provide balance.

Or, they could start selling sex toys and see if that helps.

Over the years, many book retailers have branched out to offer items to “pair” with books, such as cozy blankets, scented candles and a selection of teas. One of the more puzzling twists in the Indigo saga, was when they started selling sex toys in the fall of 2023. The hallmark motto for Indigo has always been, “Books Music & More”, and it seems that the idea of “more”, has expanded to well outside of the traditional box.

However, it should be noted that business stunts, such as selling sex toys, can be a great way to generate interest and media in business. If the publishers of 50 Shades of Gray ever release a collector’s book-set, Indigo might just have a genius promotional pairing-idea on their hands.

Is the “Indigo Saga” coming to a tragic end? Or can we expect more plot twists?

If this was a novel, it is a fast-paced story. Only a few years ago, Indigo boasted revenues over 1B$ (2018). As of Q2 in 2024, Indigo reported $206.9M in revenue, which was around $30M less than the same quarter only one year earlier.

If this story was following template of Joseph Campbell’s “Hero’s Journey”, we are right at the Initiation. This is the stage where the hero faces a series of tests, trials, and obstacles to overcome. The hero often fails their initial attempts and in fact, often makes their situation worse and they may be tempted to abandon the quest all together. However, if there is a shift in perception, transformation can occur, and solutions can began to present themselves.

Despite all their recent challenges, Indigo does have a strong history and a lot going for them. Since Reisman founded Indigo in 1996, it successfully expanded across Canada to include 86 superstores (Chapters and Indigo) as well as 123 smaller stores (Coles). In addition, the company has been involved with many great charitable projects, including Indigo Love of Reading Foundation, which is a program which helps to provide new books and learning materials to high-needs elementary schools across the country.

Personally, I have some very fond memories of shopping for books.

I recently lost my mother, and over the last few years as her body shut down, her mind thankfully retained its’ sharpness. She could always escape and find comfort in books. On the days she was out of the house for doctor’s appointments, she’d often smile turn to me, “Do we have time to pop by the book shop?”

Of course we did. And that shop? Indigo Books.

I’m rooting for Indigo and its’ employees and truly hope there’s an act three to this story. I believe in fair competition and don’t want to see a monopoly by Amazon. If the higher-up’s at Indigo are looking for inspiration on how-to right the ship, I’d suggest asking your knowledgeable front-line workers for their thoughts. I’m sure they could recommend some great how-to manuals right off your shelves.

If someone does turn this saga into a novel- I would buy it in a heartbeat. I guess we will just have to wait and see whether or not there will be an Indigo around to buy it from in the future.