An update on Tattered Cover's sale process — July 2nd, 2024
On June 17th, our parent company, Bended Page, accepted a bid from Barnes & Noble for $1.8 million. Pending court approval and once the proposed sale closes, Tattered Cover will operate as a fully-owned subsidiary of Barnes & Noble.
All of us here at Tattered Cover are excited about this next chapter and the significant resources that our new owners will provide toward continuing our mission as Colorado’s beloved iconic bookstore. We will continue to operate as Tattered Cover with the same staff in the same store locations.
Barnes & Noble CEO James Daunt—who himself still owns and operates several bookstores in the United Kingdom—visited with Tattered Cover staff and also sat down for an exclusive interview with the Denver Post.
While there are many (many!) details still to be worked out, please take a few minutes to read the interview. We think you’ll be encouraged by the commitment, vision, and direction ahead for Tattered Cover.
Thank you all for your continued support—we appreciate you all!
Read the latest Denver Post article with James Daunt, CEO of Barnes and Noble
March 29th, 2024 PRESS RELEASE:
Tattered Cover asks to reschedule plan confirmation hearing so it can consider potential offers to be acquired
Interest from potential buyers accelerates as Tattered Cover continues showing improved sales through increased inventory, enhanced marketing and full schedule of author and community events.
DENVER (March 29, 2024) – Bended Page, LLC, which owns and operates Tattered Cover Book Store, has filed a motion with the U.S. Bankruptcy Court for the District of Colorado asking to reschedule the hearing set to consider confirmation of its reorganization plan in order for the company 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.
The company’s board of directors, which includes its current debtor-in-possession (DIP) lenders, determined last week 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.
The motion to postpone the plan hearing emphasizes that growing interest in acquiring Tattered Cover during its Chapter 11 reorganization has been accelerated by the store’s continuing operating success, including a full schedule of literary and author events, and year-over-year monthly sales numbers that are better than the national average for independent bookstores. (See Tattered Cover’s events calendar here.)
Bended Page filed a voluntary petition for reorganization on October 16, 2023, utilizing the streamlined small business features of Chapter 11 Subchapter V to obtain supportive financing while working quickly toward overcoming substantial financial issues that stymied the 53-year-old bookstore’s liquidity and ability to recover from changing market conditions exacerbated by the COVID pandemic.
Under the 2020 Small Business Reorganization Act, Congress enacted Subchapter V of Chapter 11 to provide a more streamlined, expeditious and cost-effective process for small “Main Street” businesses like Tattered Cover to reorganize.
Critical to the company’s restructuring effort was securing DIP financing from Read Colorado, LLC, extending Tattered Cover’s ability to operate beyond last October, despite its lack of inventory, cash and financing options at the time.
“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 CEO 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. 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.”
A proposed reorganization plan was submitted on March 7, with the court scheduling a confirmation hearing for May 28.
In asking the court to move the company’s reorganization plan confirmation hearing to no earlier than June 17, Bended Page noted that a sale process will require amendments to the reorganization plan, as well as clarification and court approval of specific procedures for responding to bids from potential buyers.
The company will not provide further comment or speculate regarding potential buyers.
CLICK HERE TO VIEW THE PDF VERSION OF THE MARCH 29TH PRESS RELEASE AND MOTION
FAQs Regarding Tattered Cover's Reorganization
Is Tattered Cover going out of business?
Tattered Cover is NOT going out of business!
We are using the protections afforded to small business via Chapter 11 to quickly improve our financial situation, increase inventory and put Tattered Cover on a smaller, stronger and more sustainable footing.
No doubt, we’ve had to make some difficult decisions. But we are committed to doing things right so Tattered Cover continues its long legacy as favorite Colorado destination and First Amendment champion for generations to come.
You can read the entire news announcement regarding our decision to voluntarily file for Chapter 11 reorganization here.
What stores are closing as a result of the reorganization?
We’ve had to make some hard choices to get Tattered Cover back on solid financial footing for the future – including consolidating our resources into fewer store locations.
These three stores are closing:
- Westminster (Closed on October 21, 2023)
- Colorado Springs (Closed on October 21, 2023)
- McGregor Square, Denver (Closed on October 26, 2023)
What will happen at the other Tattered Cover stores?
It will be business as usual -- with much-improved inventory -- at our other four locations:
- East Colfax Ave., Denver
- Union Station, Denver
- Aspen Grove Shopping Center, Littleton
- The Children’s Store at Stanley Marketplace, Aurora
When will we see more books in stock at the remaining stores?
We're already working to move inventory from our closed stores to the Colfax and Aspen Grove locations. Substantial additional new selections will start arriving from publishers by early November, so we will have a great selection of books to choose from for your holiday shopping!
What about online orders, special orders, and gift cards?
Again, business as usual. All online and special orders placed at our remaining stores will continue to be fulfilled, and gift cards will be honored as always. For special orders previously placed at closing stores, the Tattered Cover team is arranging to promptly ship those orders to customers.
I’m a “Friends of Tattered Cover” member. Will there be any changes to this program?
Our “Friends of Tattered Cover” loyalty program and related benefits will continue without interruption, including private member-only shopping events at our remaining four locations to be scheduled for the holidays.
Will events scheduled for the closed stores be held at the open stores?
If possible, we will move those events or reschedule them for the four remaining locations. Please check TatteredCover.com or keep an eye on social media for schedules, or sign up for our email newsletter.
Are there any changes to the stores at Denver International Airport?
No changes. The DIA locations are operated by Hudson Books under a license agreement with Tattered Cover.
Why does Tattered Cover need to reorganize under Chapter 11?
Tattered Cover is using the small-business protections of the U.S. Bankruptcy code to quickly work through financial issues that have stymied our ability to recover from changing market conditions, which were exacerbated by the COVID pandemic.
With court approval, we’re able to access new financing that will provide for much-needed new inventory from book publishers in time for the holiday season while we improve overall operations.
For more specific detail regarding the Chapter 11 process, please click here to read Tattered Cover’s October 16, 2023 news announcement. We’ll continue to provide updates as we work through the process.
Is Kwame Spearman still CEO of Tattered Cover?
No. Brad Dempsey, a Colorado native and Denver attorney has served as Tattered Cover’s Chief Executive Officer since July 2023.
Mr. Spearman stepped down as CEO in April 2023 and is currently a minority equity holder in the company. He is not a member of Tattered Cover’s board of directors nor is he involved in any of aspect of our operations, including the Chapter 11 reorganization, and he does not speak on behalf of the store or its management.
Tattered Cover is solely owned and operated by Bended Page, LLC, which is governed by a board of six directors, all of whom are equity holders/investors. The company currently has an additional 15 equity holders/investors who are not on the board of directors.
What about institutional and business sales?
Tattered Cover will continue to provide sales and services to academic institutions, businesses and other groups as normal.
Click here to join Tattered Cover’s email list for updates about the store.
A Letter from our CEO, Brad Dempsey
On October 21st, 2023, our CEO penned a letter to all customers to further communicate our efforts to restructure.
To read this letter, please click here.
October 16th, 2023 PRESS RELEASE:
Tattered Cover initiates Chapter 11 reorganization to obtain new financing, improve inventory, and strengthen operations for long-term sustainability