The Tattered Cover, Denver, Colo., has submitted a financial plan that would enable the bookstore to emerge from bankruptcy by June. As reported by Denverite, the plan aims to resolve "about $3.4 million in unsecured debt, repair its relationship with vendors and restructure operations to become a smaller, more modern and financially sustainable business."
The retailer is considering cost-cutting measures that include "evaluating its current lease terms and exploring whether to keep its four existing retail stores or move to less costly locations." (The four stores do not include Tattered Cover's Denver International Airport locations, which are joint ventures with Hudson Booksellers.)
Tattered Cover CEO Brad Dempsey said in a statement, "Without a doubt we still have complicated negotiations to complete, challenging local economic pressures to navigate, and difficult decisions to make as we forge ahead toward establishing profitability. But with the continued hard work of our incredible team and support from people in Colorado as well as across the nation, we are optimistic about Tattered Cover's future."
After filing for bankruptcy last October, Tattered Cover closed three stores and let go about 30% of staff. In January, in a partial reorganization plan, Tattered Cover listed unsecured claims totaling $3.2 million, with "large amounts" owed to publishers, landlords, and former employees, including some $467,000 to former CEO and co-owner Kwame Spearman, an amount Tattered Cover is objecting to.