Brookstone Declares Bankruptcy, To Close All Non-Airport Stores
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Brookstone has officially filed for bankruptcy a second time, all but erasing itself from the retail map in the process.
The novelty retailer filed for Chapter 11 protection on Thursday, the second time it has done so since 2014, the Daily Mail reports. Chinese investor Sanpower Group Co. bought the company during its last bankruptcy auction for $174M, but this time it will be valued for even less.
Brookstone will close all 101 of its stores located in malls, leaving open only the 35 locations it has in airports. The value of its assets is between $50M and $100M, and the company has up to $500M of debt, according to the Daily Mail. Brookstone CEO Piau Phang Foo cited "extreme challenges" in the shopping mall climate, but predicted its airport stores, online and wholesale businesses would have significant value at auction in a statement obtained by the Daily Mail.
Among the stores that will be closing is Brookstone Makers Showcase, an experiential concept meant to connect independent and online-based manufacturers with customers in person. That particular store opened in May at the Roosevelt Field Mall in Garden City, New York.
Though anchor tenants like Sears and Toys R Us have dominated headlines in the ongoing saga following the onslaught of retail closures and mall headwinds, merchants largely dependent on inline spots in malls have also taken a hit. Nine West filed for bankruptcy earlier this year, closing all 70 of its stores.