Indigo Books and Music
Retailer / private label
UnclaimedIndigo Books and Music is Canada's largest national bookstore and specialty gift retailer, operating Indigo, Chapters, Coles and related banners.
Last updated October 14, 2026
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Overview
Indigo Books and Music is a Canadian retail group centered on books, cultural products, gifts, toys, stationery, home décor and, since the early 2020s, selected music and audio equipment. The company is headquartered in Toronto and operates across Canada through a mixture of large-format stores, mall-based bookstores, small-format locations and e-commerce. Its best-known banners include Indigo and Chapters, alongside Coles, SmithBooks, IndigoSpirit and The Book Company. The group has been described as Canada's largest book, gift and specialty-toy retailer and, after decades of consolidation, the country's last remaining national bookstore chain. The company was founded in 1996 by Heather Reisman, with financing from Onex Corporation, whose chairman and chief executive Gerry Schwartz is Reisman's husband. Indigo opened its first major store, initially branded Indigo Books, Music & More, in Burlington, Ontario, on September 4, 1997. Its defining strategic move came in 2001, when it acquired Chapters, then its largest Canadian bookstore competitor. The transaction also brought the Coles chain and other small-format operations into the Indigo group. Stores have continued to operate under several legacy names, allowing the company to cover both destination shopping centres and compact urban or mall locations. Indigo's physical retail model gradually expanded beyond conventional bookselling. In the 2010s, management emphasized gifts, toys, stationery, lifestyle merchandise and home products, responding to pressure from online bookselling and changing consumer shopping habits. The company also developed IndigoLife, an own-brand range, and created recommendation-led merchandising through programs such as the Indigo Trusted Advisor initiative. By 2022, stores and the website had begun offering vinyl records, CDs and selected audio equipment, including headphones and turntables. E-commerce complements the store network with books and a broader selection of non-book products. The group also took part in digital reading. Kobo was created and spun out of Indigo in 2009 as an e-reading platform and device business. Indigo held a substantial stake until Rakuten acquired Kobo in 2011 for US$315 million. Kobo subsequently became a global digital-reading company under Rakuten rather than an operating division of Indigo. Indigo has maintained a significant charitable and literacy program through the Indigo Love of Reading Foundation, established in 2004. The foundation supports elementary-school libraries and literacy resources, including through its Adopt a School program and fundraising at retail locations. The initiative has provided tens of millions of dollars to Canadian school libraries, although its funding model and its relationship to Indigo's retail business have also drawn criticism. After Heather Reisman moved from CEO to executive chair in 2022, the company went through several leadership changes. Peter Ruis became CEO but resigned abruptly in September 2023, after which Reisman returned as CEO. Indigo was hit by a ransomware attack in February 2023 that affected card payments, returns, gift cards, the rewards system and online shopping. The company said customer data was not compromised but notified current and former employees that employee information had been affected. In 2024, shareholders approved a transaction to take Indigo private at CAD$2.50 per share; the deal closed on May 31, and the stock was delisted from the Toronto Stock Exchange in June. Indigo remains an active Canadian retailer, but its post-delisting ownership and management structure should be verified against current company disclosures.
History
Indigo Books and Music emerged during a period of consolidation in Canadian bookselling. Heather Reisman founded the company in 1996 with financing from Onex Corporation. Its first major bookstore opened in Burlington, Ontario, on September 4, 1997, under the Indigo Books, Music & More name. The large-format concept sought to make book retail a destination experience while incorporating music and other merchandise. Indigo's scale changed substantially through its 2001 acquisition of Chapters, its principal national competitor. The transaction also brought the Coles chain and related small-format stores into the group. Rather than eliminate all of the acquired identities, Indigo retained several banners, including Chapters and Coles, alongside Indigo. The resulting network combined large destination stores with compact bookstores in shopping centres and urban locations. The acquisition helped Indigo become the dominant national physical bookseller in Canada and, following the decline or disappearance of other chains, the country's last national bookstore group. The company later broadened its commercial model. Books remained central, but stores increasingly devoted space to toys, gifts, stationery, home décor and lifestyle goods. In 2014, Indigo closed three prominent Toronto locations, including the former World's Biggest Bookstore, and Reisman described the business as entering a phase in which non-book merchandise would represent a much larger share of sales. Indigo also introduced its IndigoLife own-brand products and recommendation programs intended to connect retail selection with expert and editorial guidance. Digital reading became another important part of the company's history. Kobo was created and spun out of Indigo in November 2009. The e-reading company grew rapidly in Canada and became a major platform for digital books and e-readers. Rakuten purchased Kobo in November 2011 for US$315 million in cash, with Indigo reportedly owning approximately 58 percent at the time. Kobo thereafter operated as part of Rakuten's international digital-commerce portfolio. Indigo continued to operate physical stores and an online shop while testing international growth. In late 2017 it announced an expansion into the United States, with a first location planned for The Mall at Short Hills in New Jersey; that store opened in October 2018. The core business nevertheless remained Canadian, with stores in all ten provinces and one territory reported during the late 2010s. At the end of fiscal 2018, the company reported annual revenue above CAD$1 billion. A 2017 store count cited 86 superstores under the Indigo and Chapters banners and 123 smaller stores under Coles, IndigoSpirit and The Book Company, although the network has subsequently changed. Leadership became less stable in the 2020s. In September 2022, Reisman became executive chair and Peter Ruis became CEO. Ruis resigned abruptly in September 2023, and Reisman returned as CEO. Earlier that year, a ransomware attack disrupted payment and retail systems for several days and left online shopping unavailable for an extended period. Indigo declined to pay the ransom. The episode raised concerns about employee-data security, even as the company stated that customer data had not been compromised. Indigo has also faced criticism over content-selection decisions, its market power, charitable-retail practices and political controversy surrounding Reisman. Historical examples of product removals or non-distribution include Mein Kampf, an issue of Harper's Magazine reproducing cartoons of Muhammad, and certain other controversial publications. CBC Marketplace criticized the Love of Reading Foundation's requirement that supported schools spend much of their book credit at Indigo, arguing that the arrangement could allow the company to benefit commercially from charitable fundraising. In 2023 and 2024, protests and legal proceedings connected to allegations about Reisman's political fundraising produced further public controversy. In May 2024, shareholders approved a take-private deal at CAD$2.50 per share. The transaction closed on May 31, and the company was delisted from the Toronto Stock Exchange in June. Indigo remains an active Canadian retailer, but its current ownership details, executive roster and store footprint should be checked against up-to-date company disclosures.
- 2024
Indigo becomes privately held
[1]A CAD$2.50-per-share take-private transaction closed on May 31, followed by TSX delisting in June.
- 2023
Ransomware attack disrupts operations
[1]A ransomware incident interrupted payment, returns, gift-card, rewards and online-shopping systems.
- 2022
Leadership transition
[1]Heather Reisman became executive chair and Peter Ruis became CEO.
- 2018
Annual revenue exceeds CAD$1 billion
[1]The company reported record annual revenue above CAD$1 billion at the end of its fiscal year.
- 2017
United States expansion is announced
[1]Indigo announced a first United States location at The Mall at Short Hills in New Jersey.
- 2014
Toronto flagship locations close
[1]Indigo closed three prominent Toronto stores, including the former World's Biggest Bookstore, while emphasizing growth in non-book merchandise.
- 2011
Rakuten acquires Kobo
[1]Rakuten acquired Kobo for US$315 million in cash.
- 2009
Kobo is spun out
[1]Indigo created and spun out Kobo as an e-reading platform and device business.
- 2004
Love of Reading Foundation is established
[1]Indigo launched a foundation supporting books, learning materials and library resources for high-needs elementary schools.
- 2001
Chapters is acquired
[1]Indigo acquired Chapters, its largest Canadian competitor, and gained the Coles small-format bookstore chain.
Products and positioning
A national Canadian bookstore and lifestyle retailer that combines bookselling with gifts, toys, stationery, home products, cultural merchandise and experiential store environments.
Bookselling · 1996
Books
Books are Indigo's core offering, spanning fiction, nonfiction, current affairs, children's literature, educational titles, cookbooks, business books and other categories. The assortment is sold through large-format Indigo and Chapters stores, smaller banners and the company's online retail operation.
Toys
Toys and specialty toys
Indigo sells children's toys, games, puzzles, educational products and other specialty toy merchandise. The category supports the company's effort to operate as a broader family, gift and lifestyle retailer rather than as a books-only chain.
Lifestyle retail
Gifts, stationery and home décor
Gift products, paper goods, journals, writing instruments, seasonal merchandise, décor and lifestyle accessories occupy a substantial role in Indigo's stores. These categories are particularly important to its experiential shopping model and help diversify revenue beyond printed books.
Private label
IndigoLife
IndigoLife is an Indigo-owned product range covering selected lifestyle and gift merchandise. It forms part of the retailer's private-label strategy and its broader positioning around curated, design-oriented products.
Music and electronics · 2022
Music and audio equipment
Beginning in the early 2020s, Indigo added selected vinyl records, CDs and audio products such as headphones and turntables. The assortment extends the retailer's historical association with books and cultural products into physical music and entry-level audio hardware.
Controversies
2024
Dispute with Indigo Kills Kids
Indigo issued a cease-and-desist letter to the pro-Palestinian activist group Indigo Kills Kids, alleging intellectual-property infringement, defamation and business interference. The Federal Court of Canada later granted interim emergency approval in related proceedings seeking website removal through internet-service providers.
2023
Ransomware and employee-data incident
A ransomware attack disrupted major retail systems. Indigo stated that customer data was not compromised but informed current and former employees that employee information had been affected. LockBit claimed responsibility, and the company declined to pay.
2023
Toronto flagship vandalism and political protest
The Toronto flagship was vandalized with slogans accusing Heather Reisman of raising funds for the Israeli military. Four people associated with the Indigo 11 later pleaded guilty to mischief.
Criticism of Love of Reading Foundation retail restrictions
CBC Marketplace criticized the foundation's requirement that participating schools use most of their book credit at Indigo and argued that the arrangement could generate commercial benefit for the retailer while supporting its charitable tax position.
Marketing campaigns
- 2017Read Between the Lines
Canada
A follow-up documentary continued the foundation's focus on literacy and the state of school libraries. The campaign extended Indigo's public literacy advocacy.
Outcome. The campaign extended Indigo's public literacy advocacy.
- 2007Writing on the Wall
Canada
The Love of Reading Foundation produced a documentary examining the condition of elementary-school libraries and the need for better access to books. The documentary increased public attention to school-library funding and literacy resources.
Outcome. The documentary increased public attention to school-library funding and literacy resources.
- 2004Indigo Love of Reading Foundation
Canada
Indigo established a charitable foundation to provide books and learning materials to high-needs elementary schools and support literacy. The program became a long-running national literacy initiative supporting thousands of Canadian schools.
Outcome. The program became a long-running national literacy initiative supporting thousands of Canadian schools.
- Adopt a School
Canada
During an annual fundraising period, individual Indigo stores select local schools to receive customer, employee and store-level donations for library and literacy needs. The program became one of the foundation's principal recurring fundraising mechanisms.
Outcome. The program became one of the foundation's principal recurring fundraising mechanisms.
Brand decisions
2024
Take the company privateM&ABackground
Shareholders considered a transaction to remove Indigo from public-market ownership.
Action taken
Shareholders approved a CAD$2.50-per-share transaction, which closed on May 31; Indigo shares were delisted from the TSX in June.
Aftermath
Indigo became privately held, reducing the availability of routine public financial and governance disclosures.
Offer price per share. CAD$2.50 (2024 take-private transaction)
2022
Add music and selected audio productsGeneration changeBackground
Indigo was broadening its cultural and lifestyle assortment beyond books.
Action taken
Stores began selling vinyl, CDs and selected audio equipment such as headphones and turntables.
Aftermath
The range reinforced Indigo's positioning as a cultural-products retailer, although its scale and current availability require verification.
2017
Enter the United StatesStrategyBackground
After establishing a national Canadian store network, Indigo explored international expansion.
Action taken
The company announced a United States store at The Mall at Short Hills in New Jersey.
Aftermath
The location opened in October 2018, while Canada remained Indigo's principal market.
2014
Increase non-book merchandiseStrategyBackground
Online competition and changing shopping behavior put pressure on conventional book retail.
Action taken
Indigo closed three prominent Toronto stores and shifted emphasis toward gifts, toys, lifestyle goods and other non-book products.
Aftermath
The retailer increasingly positioned its stores as broader cultural and lifestyle destinations.
2009
Spin out KoboStrategyBackground
Digital reading was emerging as an alternative to printed books and required a technology-focused operating model.
Action taken
Indigo spun Kobo out as a separate e-reading platform and device business.
Aftermath
Rakuten acquired Kobo in 2011, turning it into an international digital-reading business outside Indigo's core retail operations.
2001
Acquire ChaptersM&ABackground
Chapters was Indigo's largest Canadian bookstore competitor, and the acquisition occurred amid consolidation in the national bookselling market.
Action taken
Indigo acquired Chapters and gained control of the Coles small-format chain.
Aftermath
The transaction created the dominant national Canadian bookstore group and preserved several acquired store banners.
Recent events
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