Barefoot in the Boston Globe...

The Boston Globe
A new chapter for children's publisher Barefoot Books
Nancy Traversy Nancy Traversy is the CEO of Barefoot Books, which has landed a deal to open a boutique in FAO Schwarz in New York. (Globe Photo/Travis Dove)
By Jan Gardner
Globe Staff / August 26, 2008


CAMBRIDGE - Addressing a Barefoot Books sales conference this month, CEO Nancy Traversy reeled off a litany of disaster stories about the children's publishing company she cofounded in 1993: Early on, a load of books split her dining room table in two. Later thousands of books were locked in a warehouse weeks before Christmas when a distributor went bankrupt. Just as the anthrax scare hit in 2001, Barefoot mailed 100,000 catalogs. "You can imagine the lack of response," she deadpans.

How things have changed. Now, with 400 children's books in print, the independent publisher has landed a deal with the world's preeminent toy store and is poised to take on New York. On Thursday, Barefoot Books will open a boutique in FAO Schwarz on Fifth Avenue, a store visited by 4 million people a year. Traversy hopes a good number of them will find their way to the 1,000-square-foot Barefoot boutique on the second floor.

Founded in 1862, FAO Schwarz sold toys and books to generations of families. When Ed Schmults was named CEO three years ago, he was horrified to learn that books had been dropped. A year ago he discovered Barefoot's lavishly illustrated books of international folktales and multicultural stories across the world. His visit to the flagship Barefoot Books store between Harvard and Porter squares - with its storyteller's throne and playful decor - convinced him that the publisher was a perfect brand for FAO Schwarz.

The deal vindicated Traversy's decision to keep the 7-year-old shop open. Though her company as a whole is profitable, the store has never made a profit. Under the deal, FAO Schwarz isn't charging rent, but revenue from book sales will be split 50-50.

Suddenly Barefoot - with sales of $6.8 million last year - is on the radar of behemoths. The publisher is in preliminary talks with PBS about a joint publishing venture as well as a digital version of Barefoot books. Next month Traversy will meet with Amazon.com to discuss the possibility of adding color to the Kindle electronic book reader and producing Barefoot e-books.

Back in 2005 Barefoot quit doing business with the nation's two largest chain bookstores. At the time, Barefoot gave Barnes & Noble and Borders full refunds for unsold books they returned to the publisher. That's standard industry practice, but the onslaught of returns hurt Barefoot's cash flow. Barefoot pulled its books out of chains, a move that Traversy was told amounted to "commercial suicide." The company has resumed selling to chains, but they account for no more than 1 percent of sales, and Barefoot accepts no returns from them.

Traversy, a mother of four, is now focused on expanding the home-based sales force modeled after Tupperware. Today 1,500 salespeople - most of them mothers - account for 20 percent of the company's revenue and represent the fastest-growing sales channel. "There's no stronger recommendation than one you get from a friend," Traversy says.

Leonard S. Marcus, a Brooklyn-based reviewer of children's books, is more impressed by Barefoot's business model than its books. "Barefoot Books is like the Body Shop of children's publishing," he says. "There's a New Age-y feel to the company." As for the books themselves, Marcus says, "They've chosen the easy way to be multicultural by mostly sticking to so-called timeless tales."

Barbara Swanson, a children's literature consultant who sold Barefoot books in the store she managed for 14 years in Portland, Ore., has a different perspective. Formerly a teacher and librarian, Swanson is a fan of Barefoot's collections of traditional folktales from around the world. "You could get a lot of diversity in one book," she says.

In the hope of expanding Barefoot's market, the company last month published its first young adult novel. "Little Leap Forward: A Boy in Beijing" portrays the harsh realities of the Cultural Revolution, based on the experiences of coauthor Guo Yue, who grew up in China. Books are burned, kites are banned, schools are closed.

As for the deal with FAO Schwarz, Traversy is already making the most of it. In the United Kingdom, she has launched a children's storytelling contest with videos being uploaded to YouTube. The winner will be flown to New York and invited to perform from the storyteller's throne at FAO Schwarz.
© Copyright 2008 Globe Newspaper Company.