Thursday April 3rd, 2014 - 1:03PM
Brookstone Inc. said it would be bought by the owner of Spencer's retail chain for about $147 million as part of a prepackaged bankruptcy plan. Brookstone, which has been struggling with falling sales, filed for Chapter 11 protection on Thursday, April 3, in U.S. Bankruptcy Court, in Wilmington, DE, along with 10 of its subsidiaries.
“This agreement will leverage the brand recognition and resources of our two companies,” Brookstone CEO Jim Speltz said in the statement. “The retail industry continues to evolve and staying ahead of the curve is critical.”
Spencer Spirit Holdings Inc., which also owns costume retailer Spirit, will be the stalking horse bidder at Brookstone's auction, according to a Brookstone statement.
Brookstone, which has about $200 million in debt, will receive debtor-in-possession financing from bondholders.
The company said it would continue day-to-day operations and did not specify if any operational changes will be made.