Lichtman's Books facing bankruptcy

The 91-year-old-Toronto based bookstore chain Lichtman's is facing financial woes.

Lichtman's president Gerry Ruby said Tuesday on CBC Radio that he blames the new large-scale bookstores, Chapters and Indigo, for forcing him to file for bankruptcy protection.

But economist John Williams said he believes Lichtman's did not keep up with the times.

"Their stores drifted away from competitive positions and other people offered a better assortment, a better shopping experience," he said.

Many larger-scale bookstores have cafes in the stores, which encourage people to stay and browse.

Indigo CEO Heather Reisman said there is a lot of competition in the book business and Lichtman's did not necessarily do anything wrong.

"Our industry in particular is under extraordinary pressure from all sides, from technology, from competitors, from new approaches to distribution. It is an extraordinarily difficult time, and as a result, sometimes there are casualties," she said.

Lichtman's has 160 employees and nine stores.