The business is saddled with about $550,000 in debt, primarily from the ill-fated opening of a second store in Beverly Hills, and has been coping not only with tumult in the book industry but also with the planned redevelopment of the structure -- known as the Barry Building -- where the bookstore has been a fixture since 1984. In January 2007, the landlord revealed plans to redevelop the entire site, which includes the three-section, 5,000-square-foot Dutton's and several other enterprises in a number of buildings.
The property is owned by billionaire investor Charles T. Munger and his wife, Nancy. A founder of the Los Angeles law firm Munger, Tolles & Olson, he partnered in 1978 with Warren E. Buffett to run Berkshire Hathaway Inc., a holding company.
Munger was in Washington on Monday and could not be reached. He said in a statement that he would allow Dutton's to use the space rent-free during the liquidation and that he would cover the $550,000 debt in exchange for the store's closing. Dutton described the offer as "very gracious and generous." As part of the deal, Munger said, Dutton would retain the Dutton's trade name.
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