The 32-year-old Dokya bookstore chain has been reduced to only two stores after failing to recover from losses caused by the 2011 floods and in the face of fierce competition.
Dokya will now focus on its publishing business as it still has potential to publish pocket books, historical novels and works by famous authors, according to a senior executive.
Nuttasit Chankaew, editor-in-chief and executive of Dokya Publishing House, said Dokya has gradually closed its bookstores since late 2011 as it faced losses of over 60 million baht caused by the massive flooding and the political unrest.
"We still can't solve our financial problems following the two incidents," he said.
Only two Dokya branches remain open, one in Tha Phrachan close to Thammasat University and the other at Ramkhamhaeng University, down from 85 stores a decade ago.
Mr Nuttasit said competition in the bookstore business has intensified and big chains like Se-Education Plc and B2S have aggressively expanded their networks nationwide in the past few years.
Moreover, consumers particularly the young generation buy few physical books from bookstores as many of them prefer electronic books. Others buy books directly from the publishers' websites.
With all these factors, he said Dokya decided to freeze its bookstore operations and the two remaining branches are considered the outstanding outlets that can survive in the coming years.
In the old days, Dokya had its bookstores in the heart of Bangkok in Siam Square and near Victory Monument where teenagers liked to hang out and meet friends.
Next year, Mr Nuttasit said Dokya will focus on its publishing business while its book distribution service is for publishers who want to distribute their books at its stores and on its network.
Dokya plans to to lure readers with more modern designs. It has the rights to publish many historical novels and those by veteran and SEA Write Award authors.
Next year, it projects its book publishing fees will reach nearly 40 million baht, which can cover costs.
The Dokya bookstore chain still has around 40,000 active members. Its bookstores stock various magazines and books, especially rare comics and children's books.
Mr Nuttasit is optimistic that physical books such as novels and pocket books will remain popular among bookworms as they have a unique appeal and do not depend on advertising.