PORTSMOUTH — The owner of a long-standing literary hot spot in Market Square could be calling it quits at year's end.

PORTSMOUTH — The owner of a long-standing literary hot spot in Market Square could be calling it quits at year's end.



RiverRun Bookstore, a downtown business since 2002, will likely close at the end of December, according to owner Tom Holbrook. He said a variety of factors related to the economy and an evolving consumer market for electronic books led to the decision to consider shuttering the downtown location. He made the announcement to his customers over the weekend, after what he described as a lot of hard thinking.



"When we moved into this space five years ago, business was booming, the economy was good and the Kindle didn't exist yet," Holbrook said in an e-mail blast to customers.



In an interview Monday with the Portsmouth Herald, Holbrook expanded upon the decision not to renew his lease for the 20 Congress St. location. He said his decision ultimately came down to a rise in digital books, a bad economy and a very large debt load on his business.



Around the same time the economy began to falter, Holbrook said, things took a turn for the worse in 2007, when eReaders like the Kindle went on the market. The introduction of the e-Readers and e-Books immediately claimed about 30 percent of the market, he said.



Another problem, according to Holbrook, is that online retailers such as Amazon.com can sell a new hardcover book at half the price an independent store can.



Over the years, Holbrook said he noticed potential customers would browse in his store, but would wait to purchase the book later on Amazon at a cheaper price point.



"Amazon regularly sells them for cheaper than what I can buy them from a publisher," he said.



Adding more pressure was the change in location Holbrook made in 2006, when he moved his bookstore from Commercial Alley to Congress Street.



"We moved from a small space to a large space, and that took quite a bit of capital," he said. "I also took out a large loan to buy out my business partners."



All of those factors combined make it difficult to afford what Holbrook said is the "most expensive real estate in the most expensive city in New Hampshire."



Having held hundreds of events at the downtown location over the years, Holbrook said the store became a cultural center of sorts for the city.



"It was the right space at the right time," Holbrook said. "Things just changed drastically."



If he's going to continue his business, Holbrook said it will have to be in a different place.



"The world of books is a beautiful one, but a shrinking one," he said. "We just can't stay here."



As a result, Holbrook said, he is looking for a new space and new investors. He said he already has a few good leads, but almost all of them would result in a loss of revenue.



"If we move, fewer people will find us, which means less sales," he said.



Without a new location and more capital, Holbrook said it is very possible RiverRun will close at the end of December.



Holbrook said what saddens him about the change in consumer buying habits is that he believes one day people will regret switching to e-Books.



"One day, people will want it back," he said of having a book in hand.



Despite the potential closing of his business, Holbrook is still optimistic about the future of books.



"I think independent bookstores are still very viable," Holbrook said. "It's pretty tough. I'm not saying it can't be done, but the people who are doing it well have low debt and cash on hand. That's not us."



Holbrook said he also believes used books have a strong future.



"There are millions and millions of used books waiting to be read again," he said. "The book industry is not gone."