Indigo Books and Music

History

The company was founded in 1996 by Heather Reisman, who is married to Gerry Schwartz, majority owner and CEO of Onex Corporation.

The company's first big-box bookstore initially called "Indigo Books, Music & More", was opened in Burlington, Ontario on September 4, 1997. With financing from Onex Corporation, Indigo bought Chapters, their largest Canadian competitor, in 2001 and continues to operate many stores under the Chapters banner. Indigo also gained the ownership of the Coles chain of small-format bookstores, which was also owned by Chapters.

Indigo closed three high-profile stores in Toronto in the spring of 2014, including the World's Biggest Bookstore, which it acquired when it bought Chapters. In June 2014, Reisman said the company was headed into a new phase, selling a much higher percentage of non-book items.

In late 2017, it was announced that it would expand to the United States, with its first location opening in The Mall at Short Hills in October 2018.

In September 2022, Reisman stepped down as CEO and became executive chair, with Peter Ruis being named CEO.

In February 2023, Indigo was the victim of a ransomware attack that rendered them unable to process non-cash transactions, returns, and gift cards for approximately four days. They got back their card transactions through a wireless pinpad, but the rewards system was still down. Online shopping remained unavailable for almost two months. While Indigo has assured the public that customer data was not compromised, they notified current and former employees that employee data had been. LockBit has claimed responsibility for the attack. Indigo made the decision not to pay the ransom due to the possibility that the money would be used to fund terrorism or organized crime.

In June 2023, Reisman announced her retirement, effective August 22, 2023. This came after four out of ten board members stepped down, citing loss of confidence and mistreatment from the board leadership.

In September 2023, founder Heather Reisman returned as chief executive officer, after Peter Ruis abruptly resigned earlier in the month.

In November 2023, Indigo's flagship store in Toronto was vandalized by posters and painted slogans accusing Reisman of raising funds for the Israeli military. The arrest of the Indigo 11 resulted in four guilty pleas for mischief.

In May 2024, Indigo's shareholders approved a deal to take the company private for $2.50 a share, the deal closed on May 31 and the stock was delisted from the TSX on June 4th

In August 2024, Indigo served a cease and desist letter to the pro-Palestinian activist group Indigo Kills Kids. Demands in the letter included that the group stop infringing intellectual property laws, remove "false and defamatory content," and stop interfering with the business and reputation of Indigo. On September 17, 2024, the Federal Court of Canada granted interim emergency approval to a lawsuit from Indigo requesting internet service providers take down the organization's website.

Operations

The company sells books, magazines, gifts, and toys through its website and in its stores. Its banners currently include Indigo Books & Music, Chapters, Coles, SmithBooks, IndigoSpirit, and The Book Company (small format).

Indigo began a partnership with Apple and iUniverse publishing in the 2010s. Indigo also manufactures its own brand of products, called IndigoLife. In addition, the chain's Indigo Trusted Advisor Program offers book recommendations from experts in health, finance, and the environment, such as David Bach and David Suzuki.

Charitable activities

In 2004, Indigo started the Indigo Love of Reading Foundation, a program that helps provide new books and learning materials to high-needs elementary schools. Indigo commits $1.5 million annually to schools across Canada.

The money is raised by Indigo itself, customers, staff, suppliers, and proceeds from Love of Reading fundraising products (i.e., gift card sleeves). Only 80% of customer donations have been granted to over 1800 schools since the Love of Reading Foundation's inception, with Indigo covering all of the operating costs of the foundation. The funding given to the schools is split across a 90% credit to spend at Indigo and 10% cash to be spent anywhere, as long as it contributes to advancement of literacy.

In addition to the regularly collected funds, the annual Adopt a School program has increased the Indigo Love of Reading Foundation's donations up to a total of CAD 26 million given to more than 3,000 school libraries in Canada since 2004. During the month-long Adopt a School program, each retail store selects a local school to be the recipient of the donations the store collects during that time period.

In 2007, the Indigo Love of Reading Foundation produced a documentary chronicling the issue of funding for books in Canadian elementary schools. The documentary Writing on the Wall recounts the establishment of the foundation, while revealing the current conditions of school libraries and literacy in Canada. A follow-up documentary was created in 2017 titled "Read Between the Lines".

Rakuten Kobo

Rakuten Kobo, an e-reader platform and manufacturer, was founded and spun off of Indigo in November 2009. By August 2011, the Kobo e-reading platform had become the dominant player in Canada, with research firm Ipsos Reid estimating that it represented 36% of the Canadian market as of that date.

In November 2011, Japanese e-commerce company Rakuten purchased the company for US$315 million in cash. Around 58% of Kobo was owned by Indigo at the time of the purchase.

Employee programs

Indigo was listed as one of Canada's Top 20 Employer Brands in the 2018 survey by Randstad NV. This is due in part to staff rewards program which includes benefits eligibility for both full-time and part-time employees. Indigo also offers a company-matched RRSP program and yearly employee scholarships.

Criticism and controversies

Charity scandal

CBC Marketplace showed that Indigo is doubly profiting from its own charity "Love of Reading Foundation": the charity forced schools to buy books only from Indigo at full retail price. Other vendors usually sell to charities at wholesale price.https://www.cbc.ca/news/business/checkout-donations-poor-transparency-about-where-the-money-goes-1.2963923 Then, the charity used the profits to get charity tax refund for the donation to its own charity. Based on data provided by the CBC documentary, the profits obtained is almost equal to the charity it gives if the tax refunds is taken into account.

Product removal

In 2001, Indigo removed Adolf Hitler's Mein Kampf from the shelves. In 2006, Indigo decided not to sell the June issue of Harper's Magazine, which reprinted the controversial cartoons of the Muslim prophet Muhammad that had led to violent demonstrations around the world. Indigo also did not distribute the issue of Western Standard which reprinted and discussed those same cartoons. The company has also reportedly refused to stock several titles by David Icke, and firearms magazines.

Competitive position

The Indigo/Chapters chain has been criticized over what some perceive as a virtual monopoly over retail-based book sales in Canada. In 2002, the company strongly opposed the entry of Amazon into the Canadian marketplace with accusations the U.S.-based company was skirting regulations about foreign ownership of Canadian booksellers.

Indigo's expansion has been blamed, among other factors, for the financial difficulties of some independent booksellers in Canada. In particular, its rise coincided with the bankruptcy of Lichtman's, once Canada's largest independent bookseller.

References

References

1. [https://static.indigoimages.ca/2018/corporate/Indigo_Annual-Report_2018.pdf Indigo - 2018 Annual Report, Retrieved August 17, 2018]
2. [https://www.indigo.ca/en-ca/store-locator/ Store Directory]
3. "2018 Annual Report".
4. Won, Craig. (7 July 2016). "Indigo plans massive store renovations". Toronto Star.
5. (2 October 2017). "Indigo Books says it's planning its first U.S. expansion next summer". [[Toronto Star]].
6. Shaw, Hollie. (2 November 2017). "As retail rivals retreat, Indigo Books plans five U.S. stores in next two years". [[Financial Post]].
7. Carol Toller. (December 1, 2014). "How Indigo plans to become the world's first "cultural department store"".
8. (2018-10-08). "First Look: Canada's Indigo Books and Music makes U.S debut {{!}}Chain Store Age". Chain Store Age.
9. Robertson, Susan Krashinsky. (2022-09-06). "Indigo founder Heather Reisman becomes executive chair, Peter Ruis named new CEO". The Globe and Mail.
10. (2023-02-09). "Indigo's 'cybersecurity incident' stretches into third day as website still offline". CBC News.
11. (2023-02-09). "Largest Canadian bookstore Indigo shuts down site after cyberattack". BleepingComputer.
12. (2023-03-01). "Indigo won't pay ransom for stolen employee data". CBC News.
13. (2023-03-02). "Indigo refuses to pay ransom, warns stolen employee data may be posted to dark web". CP24.
14. (2023-06-07). "Indigo founder Heather Reisman retires, almost half of board steps down". CTV News.
15. (2023-09-18). "Indigo founder Heather Reisman returns as CEO". The Globe and Mail.
16. (27 March 2025). "Charges dropped against members of pro-Palestinian group 'Indigo 11'".
17. (11 April 2025). "Last of Indigo 11 receive conditional discharges with probation for 12 months". Toronto Star.
18. Inc, Indigo Books & Music. "INDIGO AGREES TO BE TAKEN PRIVATE BY TRILOGY AT $2.50 PER SHARE".
19. Alshami, Lama. (2024-12-19). "Indigo Kills Kids: How arts communities are challenging power structures within Canada".
20. "Federal Court of Appeal sets hearings for tax and radio broadcasting cases".
21. Rothman, Jonathan. (2024-09-17). "Indigo wins temporary court order to block online boycott promotion that claims it kills kids".
22. Rothman, Jonathan. (2024-10-28). "Judge orders websites accusing the Indigo bookstore chain of 'killing kids' to remain offline for two years".
23. DeForge, Michael. (8 October 2024). "The Giller Prize and the 'Indigo 11'".
24. King, Thoby. (2024-12-05). "Indigo's Copyright Victory Opens A New Front In BDS Struggle".
25. Raveendran, Rochelle. (26 September 2024). "Pro-Palestinian advocates protest at Indigo stores in Toronto". CBC.
26. (June 2018). "Love of reading pays off for Tillicum elementary".
27. "The Love of reading".
28. "Love of reading".
29. "Indigo Love of Reading Foundation FAQ".
30. (28 April 2018). "Love of Reading Foundation donates books to local school".
31. (12 February 2015). "Indigo keeps the love of reading alive".
32. (16 October 2007). "Writing on the Wall - Indigo Love of Reading Video".
33. "Indigo Love of Reading Foundation brings awareness to Canada's literacy crisis in new documentary, Read Between the Lines".
34. (17 May 2017). "Read Between the Lines video".
35. (November 8, 2011). "Rakuten to Acquire Kobo". Kobo blog.
36. Barbour, Mary Beth. (2011-11-08). "BlackBerry, Apple, Kobo Top Brands in Canada's Mobile Device Market". Ipsos Reid.
37. Will Connors. (November 9, 2011). "Rakuten to Buy Maker of Kobo E-Reader". [[The Wall Street Journal]].
38. J. O'Dell. (November 8, 2011). "Kobo acquired: Japanese web retailer Rakuten paid $315M cash". VentureBeat.
39. (September 26, 2019). "top 20 companies to work for in 2019". [[Randstad NV]].
40. "Goodreports News Archive 4". Goodreports.net.
41. James Adams. (May 27, 2006). "Indigo pulls controversial Harper's off the shelves". [[The Globe and Mail]].
42. (May 31, 2006). "A little more free speech, please". The Gazette.
43. [http://www.eohc.ca/chapters.asp Eastern Ontario Firearm Club "Boycott Chapters" page] {{webarchive. link. (2008-12-28)
44. "CTV News | Top Stories - Breaking News - Top News Headlines". Ctv.ca.
45. (March 7, 2000). "Lichtman's files for bankruptcy protection". CBC News.