Brookstone, which announced in April that it expected Spencer’s Spirit Holdings Inc. to purchase it for $147 million, has reported that Sailing Capital Consortium prevailed at the company’s June 2 bankruptcy auction. Sailing outbid Spencer’s with a $173 million offer, according to published reports.
The sale is subject to bankruptcy court approval and should close by early July, Brookstone related. Under Sailing, Brookstone will continue to operate as a stand-alone company and brand, the retailer asserted.
The Sailing Capital Consortium consists of Chinese investment firm Sailing Capital and Chinese conglomerate Sanpower with financing commitment from GE Capital, Brookstone pointed out.
“This is a very exciting day for Brookstone. We were looking for a strong strategic partner who shares our vision and passion for Brookstone’s next phase of growth. We have found these qualities in Sailing and are thrilled about the opportunity to begin leveraging the resources of their global partners…We will emerge from Chapter 11 as a healthy company with a bright future and look forward to servicing our customers for years to come,” Jim Speltz, president and CEO of Brookstone, said in announcing the transaction.
James Liu, president and CEO of Sailing, said in a statement that the company is “committed to strengthen Brookstone’s operations in the U.S. To this end, we will work with Brookstone’s management and team to enhance R&D capabilities, blaze new trails with cutting-edge products, rejuvenate its stores and motivate the sales team.”
Liu said that plans call for Brookstone to expand beyond the U.S.
“As part of this strategy, our partner, Sanpower Group, will assist Brookstone in penetrating the fast-growing China market as well as establishing a presence in the U.K. We believe the opportunities ahead for Brookstone are simply immense,” he said.
According to Wall Street Journal reports, Kevin Mahoney, the general counsel of Spencer, confirmed that the company lost the auction but had no further comment. Additionally, the WSJ reported that Sailing Capital was formed in 2012 with backing in part by the Shanghai government to help Chinese companies invest abroad.