DENVER (KDVR) — The local bookstore chain Tattered Cover has filed for Chapter 11 bankruptcy and plans to close three stores.
A press release states the move aims to help the company access small business financing “to recover from changing market conditions exacerbated by the COVID pandemic.” The company plans to use the funding for holiday shopping inventory, technology and operations and to pay staff.
The company operates six Denver-area bookstores and one in Colorado Springs, as well as shops at the Denver airport. The website states Tattered Cover was established in 1971. The Colorado Springs, Westminster and McGregor Square locations are expected to close between late October and early November, affecting at least 27 workers, according to a press release.
According to forms filed in the case, the bookstore has unsecured claims to multiple publishers, property management and even the state of Colorado. The claims range from thousands to hundreds of thousands of dollars.
Another form states the company, listed as Bended Page, LLC, has between 200-999 creditors, and between $1 million to $10 million in liabilities. The company’s assets are between $1 million and $10 million, according to the document.
The paperwork specifically lists 20 creditors, with the following six having more than $100,000 in unsecured claims:
- Penguin Random House LLC – $375,765
- Office of the State Auditor – $375,563
- Ingram Book Group LLC – $306,477
- MacMillan Pub Svs. – $295,728
- Simon and Schuster – $259,355
- TC Incorporated – $215,000
“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,” said CEO Brad Dempsey in a release.