New York -- Saddled with high levels of debt and sluggish sales, Brookstone Inc. is preparing to file for bankruptcy protection, with a plan already in place to be bought by specialty retailer Spencer Spirit Holdings Inc.
"While we have implemented various successful cost-cutting initiatives, the search for a strong strategic partner who shares our vision and passion was a natural progression,” Jim Speltz, Brookstone president and CEO said in a statement. “We think we have found that in Spencer Spirit and are excited about the opportunity to begin leveraging the resources of the two companies and popularity of the Spencer, Spirit, and Brookstone brands."
Spencer, which is based in Egg Harbor, N.J., operates Spencer's and Halloween seasonal retailer Spirit stores. It has been in discussions with Brookstone for weeks and both companies are looking to finalize sale paperwork, the Wall Street Journal said.
Spencer is expected to pay around $120 million for Brookstone, according to the report.
Based in Merrimack, N.H., Brookstone currently operates approximately 250 stores in the United States and Puerto Rico. The specialty retailer was taken private in 2005 by a group of investment firms.