Tattered Cover Bookstore in Denver, Colo., could soon be sold.
Bended Page LLC, which owns and operates Tattered Cover, filed a motion last week to reschedule an upcoming bankruptcy reorganization hearing in order to respond to potential buyers.
"The company is in discussions with individuals and businesses across the U.S., and expects additional interest from other potential buyers as word spreads that Colorado's iconic independent bookstore is open to being acquired," read a statement issued Friday.
The bookstore's board of directors, which includes Read Colorado LLC, its debtor-in-possession, has "determined that positioning Tattered Cover for sale to a qualified, committed new owner is in the best long-term interests of the company, current investors, employees, suppliers, and Colorado's literary community."
On October 16, 2023, Tattered Cover filed for Chapter 11 bankruptcy, announcing that it would close three of its seven locations and lay-off approximately a quarter of its workforce. On March 7, 2024, the bookstore submitted a proposed reorganization plan, with a confirmation hearing scheduled for May 28.
Now, the bookstore has asked to reschedule that hearing to a date no earlier than June 17, as a sale would require changes to the company's reorganization plan, "as well as clarification and court approval of specific procedures for responding to bids from potential buyers."
Bended Page noted that the store's operating success in recent months, including improved sales, enhanced marketing efforts, and a full schedule of author and community events, has fueled interest in acquiring the bookstore.
"Read Colorado's DIP loan was the lifeline that allowed Tattered Cover to rework itself into a strong position to be acquired by people who share our commitment to independent bookstores," said Tattered Cover chief-executive Brad Dempsey.
"It supported ongoing operations so we could pay wages and benefits for more than 70 employees, as well as severance to those we had to let go when we consolidated our store locations," he continued. "We were able to keep paying rent at our four local stores, host many terrific events, and paid more than $300,000 in sales taxes to the communities we serve."
In its motion with the court, Bended Page said that same-store sales in February rose 14% and in March were up 20% "despite closures incurred for inventory and snowstorms." It added that "improved marketing and events efforts have received positive recognition from publishers and other prominent independent bookstores across the country."