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.
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.