A “changed shopping environment downtown” bankrupted a boutique, its owner says.

A Line Boutique, which has shops in Cherry Creek and the Denver Tech Center, filed for Chapter 11 bankruptcy Monday. It will remain open and operating as usual.

“Like every independent retailer, we know firsthand that margins in this industry are thin,” owner Karmen Berentsen told BusinessDen in an emailed statement. “That reality is exactly why closing Union Station, a location that had become a significant drain on the business, was the right decision. This (bankruptcy) filing is simply the legal conclusion of that process.”

A Line was founded in 2007 and purchased by Berentsen, then a young tech entrepreneur, in 2012. It now has four stores, but that former spot is still causing trouble.

“Following the COVID-19 pandemic, (A Line)’s downtown Denver store struggled, never recovered, and ultimately closed,” the company told a bankruptcy judge Monday, referring to 1750 Wewatta St. near Union Station. “It is currently being sued by the landlord of the downtown Denver location. (A Line) filed this bankruptcy case primarily as a result of that.”

Court documents in the lawsuit between A Line and its former landlord, Ascentris, have been suppressed by a judge since it was filed last year. A Line says Ascentris is seeking almost $1.1 million from the high-end women’s boutique, an amount that A Line disputes owing.

Berentsen complained to BusinessDen last year that Ascentris had overcharged her for rent at 1750 Wewatta St. and had lackluster security, forcing the store to close despite a 10-year lease through 2029. Several employees had quit due to safety concerns, she said.

“Other than the closure of the Union Station location, operations will continue as normal, including the same great team and movement,” according to Berentsen’s statement this week. “This is a necessary legal step in putting that (downtown) chapter behind us.”

For a bankrupt company, A Line is doing well. It has no secured debt or unpaid taxes and has more assets ($2 million worth) than liabilities. The $1.1 million that it may owe Ascentris is 83% of its debts, with the rest ($216,000) owed to vendors and a California landlord.

Annual revenue figures have also held steady, from $8.2 million in 2024 to $8.3 million in 2025 and $4.5 million in the first half of 2026. Between payroll and dividends, Berentsen has paid herself $250,000 over the past year, according to bankruptcy filings.

A Line’s lawyer is Aaron Garber of Wadsworth Garber Warner Conrardy in Littleton.

“We are stable, we are here, and we are grateful,” the company says.

“But moments like this are also a reminder of why shopping local and supporting small business matters more than ever. Independent boutiques like ours exist because of communities who choose us, and that choice makes all the difference. Come see us. We’d love to have you.”