Books-A-Million wasn't the only one who took a dive. The Wall Street Journal reported that Barnes & Noble's net income dropped 29% during its fourth quarter last fiscal year. Unlike BAM, I've had a difficult time finding figures for their whole fiscal year.
Borders is having similar difficulties. This March 5th Bloomberg article details what the company has done in order to remain in business.
The big question is whether these bookstores are simply having the same problems everyone else is having or retail booksellers are in the same boat as newspapers. Is the problem an old business model, technology or bad economy?