The Bankruptcy Court for the District of Delaware recently approved Bluestar Alliance as the “stalking horse” bidder for Brookstone’s auction scheduled for September 26.
Bluestar’s stalking horse bid for approximately $56.35 million consists of $50.45 million in cash and at least $5.9 million of value in the form of readily salable inventory. Bluestar’s bid also includes an option for the company to select a transaction that would keep up to 50 existing Brookstone stores open, with a penalty of $400,000 payable if Bluestar either does not select this option or selects it and fails to keep at least 30 stores open.
Bluestar noted that its approved stalking horse bid is subject to higher and better offers in the auction to take place on September 26.
“We offered a bid that we believe substantiates the heritage and innovation of the Brookstone brand,” said Joey Gabbay, CEO of Bluestar Alliance. “We look forward to growing the brand through our financial restructuring and maximize the business with our potential e-commerce, wholesale and retail partners both domestically and internationally to enhance and expand its current footprint.”
Bluestar added that it believes that its focus will synergize with Brookstone’s brand. “Our key focus categories include wellness, home, travel, entertainment, gifting, new tech and corporate sales, many of which are similar to those of Brookstone,” said Ralph Gindi, COO of Bluestar Alliance, which manages a current portfolio of over 250 consumer brand licensees and a growing branded retail platform of over 100 stores worldwide.
Bluestar said it would plan to grow Brookstone’s presence in premium airport locations and wholesale channels and will continue to grow the e-commerce platform.
As previously reported, Brookstone was making a bid to reverse the fortunes of its mall-based stores, but the initiative was cut short by a Chapter 11 bankruptcy filing in a Delaware federal court in August.