What a great chair! It is located at the Myopic Bookstore in Providence, RI. Here's a link to the story at the Rag and Bone blog.
It was made by artist David Karoff: "David Karoff welded the chair and attached the paperbacks: they have holes drilled though their insides and are slipped onto a hidden rebar frame. All of the materials are recycled - even the books, which are cast-offs from the Rochambeau Library Book Sales."