Brookstone emerges from bankruptcy
Brookstone will stay alive online and in airports.
A bankruptcy court judge approved the retailer’s reorganization plan, which includes selling Brookstone’s online and wholesales businesses and all intellectual property, to a partnership formed by private equity firm Bluestar Alliance and electronics manufacturer Apex Digital. The sale, worth about $65 million, saves about 30 of Brookstone’s airport shops, the company’s website, wholesale operations and about 300 jobs.
Brookstone filed for Chapter 11 bankruptcy protection in August, listing assets of $50 million to $100 million and liabilities of $100 million to $500 million. The 45-year-old company closed its remaining 101 mall stores, but continued to operate its airport stores, e-commerce and wholesale businesses while it looked for a seller.
The chain previously filed for bankruptcy in 2014, and was subsequently was sold at an auction to a group of Chinese buyers backed by retailing conglomerate Sanpower Group and Hong Kong-based private-equity firm Sailing Capital.
Brookstone blamed deteriorating mall traffic, supply chain issues, technical problems and management turnover for its recent problems.
It is great to see our past client and interesting retailer come out fighting again.