9News Interviews R&H on Bankruptcy Proceedings

The fate of Denver’s independent bookstore chain Tattered Cover hangs in the balance as discussions of a potential sale emerge amidst financial troubles. The company filed a court motion to postpone its Chapter 11 reorganization so it can respond to potential buyers. 9News reports the iconic Denver bookstore chain is up for sale, parent company says.

9News turned to Robinson & Henry Bankruptcy Partner Elizabeth German for insight on the legal intricacies surrounding Tattered Cover's Chapter 11 reorganization plan and the implications of a potential sale.

Bended Page, LLC, the parent company of Tattered Cover, recently filed a motion with the U.S. Bankruptcy Court for the District of Colorado, signaling its intention to pursue a sale process. The decision to explore a sale comes during mounting financial pressures, with Tattered Cover owing creditors between $1 million and $10 million.

According to German, the move to entertain potential buyers reflects the harsh realities facing the bookstore chain. "We can read between the lines and maybe assume that some of the financial projections that maybe they based that initial plan on didn’t bear fruition," suggests German. 

She elaborates, "I think realistically the writing is on the wall. I don’t think they think long term they can continue, even with the infusion of cash, that they’re better off in totality selling."

The decision to position Tattered Cover for sale reflects a shift by the company's board of directors. Despite initial optimism following its acquisition by investment group Bended Page in 2020, the bookstore chain has faced challenges and financial struggles.

The upcoming court hearing on the reorganization plan was originally scheduled for May 28. The company requested the date be postponed to June 17. This will be pivotal in shaping Tattered Cover's next chapter.