On October 31, 1976, Old Wives Tales opened at 532 Valencia Street, funded by a loan from the San Francisco Feminist Federal Credit Union. It initially operated as a partnership between the founders.[2] In 1978, Carol Seajay and Paula Wallace broke up, with Wallace moving away. The bookstore was moved to a new location at 1009 Valencia Street after the breakup,[5] and Seajay restructured it to run as a worker cooperative.[2]
In 1983, members of the worker collective incorporated Old Wives Tales as a nonprofit. Seajay resigned the same year.[6]
In early 1991, the bookstore halved its floor space as a result of financial difficulties.[7] In August 1993, Old Wives Tales reported additional financial trouble, with the collective seeking $25,000 in loans to continue operating the bookstore.[8]