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Brookstone sale to Chinese buyer approved

Merrimack, N.H. – A bankruptcy court in Wilmington, Delaware, has approved the June 4 sale of Brookstone Inc. to Hong Kong-based Sailing Innovation (US) Inc., a consortium led by Sailing Capital Overseas Investment Fund LP with a financing commitment from GE Capital. Backers of the $174 million acquisition include Chinese conglomerate Sanpower Group and Chinese government-supported Shanghai Investment Group.

The purchase, which is a key element of Brookstone’s plan to exit bankruptcy, includes $135.7 million in cash, $10 million and $28 million of Brookstone’s liabilities. Novelty retailer Spencer Spirit-Holdings Inc. will receive $4.2 million in fees and expenses. Sailing Capital has said it wants to revitalize the Brookstone brand and will not close more than one or two of the chain’s 242 current stores.