Brookstone Inc. files Chapter 11 bankruptcy protection
Brookstone Inc. filed bankruptcy protection to be able to push through with a sale to Spencer Spirit Holdings Inc. This was according to a report from Bloomberg which added the move was made after online rivals reduce non-essentials.
In 2005, Brookstone was taken private by Temasek Holdings in a deal valued at USD422 million. Today, Brookstone filed Chapter 11 bankruptcy protection with the US Bankruptcy Court in Delaware. The company listed its assets and debts valued USD500 million each.
Brookstone said prior filing the bankruptcy protection that it has been in discussions with Spencer for a deal. The sale would result for Brookstone to continue its operation and keep its current workers. The company was known for its massage chairs sold at USD4600 and arcade systems called “Pac Man” valued USD3000.
The shares of Brookstone have fallen by 7.3 percent as recorded in the quarter ending September 28. This decrease of sales made a net loss of USD18.1 million for the company. This was according to a statement from Brookstone last November 5.