Owner of iconic Tattered Cover files for bankruptcy
DENVER — Tattered Cover Book Store, once described by The New York Times as “one of the great bookstores of the Western world,” is in bankruptcy.
Parent company Bended Page LLC Monday filed for Chapter 11 bankruptcy protection with U.S. Bankruptcy Court for the District of Colorado, listing assets and liabilities of between $1 million and $10 million.
Tattered Cover will close three stores, at Denver’s McGregor Square, Westminster and Colorado Springs. The closures are expected to begin Oct. 23 and be completed by early November, according to a press release regarding the filing.
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“At least 27 staff positions out of Tattered Cover’s current 103 positions will be impacted by the closures,” according to the press release. “Some impacted employees may fill temporary seasonal positions at the remaining stores during the holiday season. The company is working to develop severance packages for eligible employees affected by the closures.”
Documents filed with the bankruptcy court indicate that Tattered Cover lost more than $660,000 from January through August.
Major unsecured creditors include Penguin Random House LLC, $375,765; the Office of the State Auditor, $375,563; and Ingram Book Group LLC, $306,477.
“The board of directors, senior management, and prospective lenders and investors agree that reorganizing with the favorable tools of Subchapter V of Chapter 11 is the most expeditious way to regain our financial footing so Tattered Cover can continue its long legacy as a favorite Colorado destination and champion the First Amendment for generations to come,” Brad Dempsey, a Denver attorney who was appointed CEO in July, said in a prepared statement.
“Our objective is to put Tattered Cover on a smaller, more modern and financially sustainable platform that will ensure our ability to serve Colorado readers for many more decades,” Dempsey said. “Restructuring for long-term viability requires managers to make very difficult business decisions that affect people and business partners, and we intend to do what we can to minimize these impacts. We’re thankful for the professionalism and dedication of our management and staff in helping Tattered Cover transition to its next successful era.”
