Tattered Cover files for bankruptcy and announces three store closures in Colorado
Tattered Cover, the Colorado bookstore chain with seven locations around the state, announced it filed for Chapter 11 reorganization and will close its locations at Denver's McGregor Square, as well as ones in Westminster and Colorado Springs.
Closure of those locations is expected to begin Monday, Oct. 23, and be completed by early November. The company says it will transfer inventory and technology from those stores to its locations on Colfax Avenue and Union Station in Denver, the Aspen Grove Shopping Center in Littleton and the children's store at Stanley Marketplace in Aurora.
At least 27 workers at the stores scheduled to close will likely lose their jobs, the company said, but some will be able to work seasonal positions at the other locations during the holiday season.
"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, who was appointed CEO of Tattered Cover in July, said in a 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," he continued. "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."
Gift cards will continue to be honored and existing orders will be fulfilled, Dempsey said.
"Since I've come on as CEO, support from Tattered Cover customers, the community and business partners has been simply incredible," he said. "We're going to do our best to get people to continue coming into the store, as well as ordering online during this holiday season. A strong holiday season will help expedite the completion of our reorganization process."
The company celebrated its 50th anniversary in 2021, with one of its employees even writing a book about its history. The following year, it opened the Westminster store -- one of the three set to close this year.
It's also been a favorite spot for Bruce Springsteen when he's in Colorado while on tour.