Eight people or companies have expressed interest in buying some or all of Tattered Cover ahead of a June 10 bid deadline and June 12 auction date, the company said.
The eight parties, who have not been named, “are actively reviewing data and information” and meeting with Tattered Cover managers “to evaluate a potential offer,” the company told a U.S. Bankruptcy Court judge last week. All eight have signed non-disclosure agreements.
The eight are not a comprehensive list of possible buyers, Tattered Cover claims, since others have also contacted the bankrupt bookstore’s executives to show some interest. A company spokesman declined to discuss the sale process with BusinessDen this week.
“Management has also been discussing the sale process with the notable authors, businesspeople, elected officials and civic-minded attendees at Tattered Cover’s numerous in-person events,” according to a motion that the company filed May 15.
The next day, U.S. Bankruptcy Judge Michael Romero set 5 p.m. on June 10 as the bid deadline and 10 a.m. on June 12 as the day and time for an auction. Assuming there is more than one bidder for the company, that auction will be held via videoconference.
The court filings offer a glimpse into the popular bookstore chain’s behind-the-scenes efforts to find a buyer. The company told Romero that it talked with several brokers and marketing firms that specialize in selling bankrupt assets, then decided not to hire any of them.
“The bankruptcy case and proposed sale process have been extensively covered in the media and publishing world. Given the interest generated by that coverage, (we) did not believe that a broker/marketer would likely reach a wider audience,” Tattered Cover said.
Tattered Cover filed for bankruptcy in October. It has been propped up financially since by a $1.3 million loan from Read Colorado LLC, a company created to lend Tattered Cover money. In late March, Tattered Cover’s owners announced their plans to sell it.
In other recent court filings, Tattered Cover revealed it spent $10,000 more than it took in during the month of March, an improvement over prior months and much better than the $100,000 loss it was predicting. It also didn’t need to borrow from Read Colorado that month.
This story was reported by our partner BusinessDen.
