Barnes & Noble has agreed to purchase famed Denver-area bookstore chain Tattered Cover, according to a filing in U.S. Bankruptcy Court. Tattered Cover, which operates five stores, filed for Chapter 11 bankruptcy last year; the court will have to approve the sale.
Barnes & Noble has agreed to pay $1.83 million for the assets of the chain, and plans to continue to operate all of the stores and retain most of the employees.
At the time of the filing, Tattered Cover reported $3.2 million in assets and $3.7 million in liabilities. The company had lost $668,000 on $6.2 million in sales (an impressive number for five bookstores) from January through August 2023. With $1.275 million in new debtor-in-possession financing, Tattered Cover was able to keep operating under the supervision of the court. That DIP financing will be repaid first from the proceeds of the sale.
Source: ICV2
