According to the New York Times, Brookstone, a mall staple known for electronic and consumer gadgets, filed for Chapter 11 bankruptcy earlier this month with plans to sell itself to the owner of the Spencer’s retail chain.
The deal will reportedly be for $147 million. Brookstone is a privately held company. It had reportedly lost $18 million since September 2013, prior to the bankruptcy filing.
“Brookstone now hopes that a combination with Spencer Spirit Holdings will provide a path toward profitability,” the Times reported. “Under the agreement with Spencer Spirit, Brookstone will continue to operate its stores in malls and airports, as well as its catalog, website and wholesale business, under the Brookstone brand.”
The purchase reportedly includes $120 million in cash, $7.5 million in notes and $18.5 million in assumed liabilities or debts.
In order for the purchase to materialize, it will first have to be approved by a bankruptcy court. There is speculation that a rival business, Monoprice, could consider bidding on the chain. Brookstone, based in Merrimack, N.H., said in its bankruptcy filing that it had up to 5,000 creditors, according to the Journal.
It reportedly had liabilities as high as $500 million and just $1 million the last time earnings were reported.
Can I Discharge My Student Loans Through Bankruptcy?
Chapter 11 bankruptcies allow businesses to search for investors or buyers, while staying open. Individuals looking to file for bankruptcy have options in Chapter 13 and Chapter 7 filings, which stop collections, foreclosures and can restructure debt.
Through a Chapter 7 bankruptcy, a debtor can discharge unsecured debt, like credit card debt or medical bills. Additionally, a Chapter 13 bankruptcy is an excellent option for individuals who have a certain income level, but have fallen behind in payments, as you can enter into a repayment plan to stop the threat of repossessions.
If you are struggling financially because of debt, contact our Washington DC and Maryland bankruptcy lawyer to learn more about whether you should file for bankruptcy. Call us today at (202) 888-8454 if you have issues with debt.
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Law Firm of Kevin D. Judd
Judd’s Judgment: Chapter 7 bankruptcy is sometimes referred to as debt liquidation.
