(COLORADO SPRINGS) — A little over a year after its opening on Tejon Street Downtown, the Colorado Springs location of the Denver-based Tattered Cover Book Store will close its doors, as the parent company initiates Chapter 11 reorganization.

According to a press release, Bended Page, LLC, which owns and operates Tattered Cover Book Store, announced on Monday that it has filed a voluntary petition for reorganization under Chapter 11 Subchapter V in the U.S. Bankruptcy Court for the District of Colorado.

Tattered Cover said it has elected to use the streamlined small business features of Chapter 11, which will allow the book store to obtain supportive financing while working toward overcoming “substantial financial issues.”

Once approved by the court, Tattered Cover said it will have access up to $1 million in debtor-in-possession financing provided by a newly created entity comprised of current company board members and investors.

“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,” said Brad Dempsey, a Colorado native and Denver attorney who was appointed Chief Executive Officer in July.

Dempsey reiterated that all customer gift cards will be honored and orders will continue to be fulfilled without interruption.

Tattered Cover said it will continue operations as it awaits court approval, but certain steps will take place in the meantime, including the closure of three of its seven stores beginning in October. The Colorado Springs location, which opened on Tejon Street in June of 2022, is included in the stores to close.

“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,” said Dempsey. “We’re thankful for the professionalism and dedication of our management and staff in helping Tattered Cover transition to its next successful era.”

Among the other stores slated for closure are Denver’s McGregor Square and Westminster. Tattered Cover said inventory and technology from these locations will move to the other four locations on Colfax Avenue and Union Station, both in Denver, Aspen Grove Shopping Center in Littleton, and the children’s store at Stanley Marketplace in Aurora.

Events currently scheduled for October and November 2023 at closing locations will be rescheduled, if possible, to take place at the store’s remaining locations. All event information will be updated on TatteredCover.com.

Tattered Cover’s Denver International Airport locations will continue operating as part of a license agreement with Hudson Bookstores.

At least 27 staff positions out of Tattered Cover’s current 103 positions will be impacted by the closures, the book store said. Some impacted employees may fill temporary seasonal positions at the remaining stores during the holiday season, and the company said it is working to develop severance packages for eligible employees affected by the closures.