Brookstone files for Chapter 11 after recession hit

Business bankruptcy proceedings can be utilized by New Jersey companies to get back on sound financial footing following difficult financial times. In fact, one well-known corporation, Brookstone, has announced that it is trying to do just that after filing for Chapter 11. The company, which most New Jersey shoppers know after visiting malls and airports throughout the nation, is currently trying to sell itself to Spencer Spirit Holdings for $147 million.

Brookstone is famous for selling iPad keyboards, personal massagers and other gadgets to consumers across the country. The company claims that all of its 240 locations will stay in operation, and business will proceed as it always has. The company will, however, be purchased by the company known as Spencer. The acquisition announcement was made public following Brookstone's bankruptcy filing on a recent Thursday.

Brookstone faced stiff declines in its customer base during the recent economic downturn. It has also faced growing competition from online purveyors of products similar to what one can find in their stores. Sales have declined sharply in recent years, and the company's most recent quarter saw declines of over 7 percent. According to Brookstone's filing, it has from $100 million to $500 million in liabilities and from $100 million to $500 million in assets.

Spencer, the company that will be buying Brookstone following its Chapter 11 proceedings, also has numerous stores located in malls across the United States. Like many companies in New Jersey that wish to clean up their debt in preparation for a sale, business bankruptcy proceedings will likely prove successful for this firm. Under the management of its future owner, Spencer, it could even rise from the ashes and be more profitable than it ever has before.

Source: therepublic.com, "Mall staple Brookstone seeks bankruptcy cover", , April 3, 2014

No Comments

Leave a comment
Comment Information
EMAIL US FOR A RESPONSE

Get Our Help Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations

Cherry Hill Office
1060 North Kings Highway,Suite 333
Cherry Hill, NJ 08034

Toll Free: 800-759-0767
Phone: 856-254-2196
Fax: 856-414-1230
Map & Directions

Philadelphia Office
Suite 1505
1515 Market Street
Philadelphia, PA 19102

Toll Free: 800-759-0767
Phone: 215-928-9199
Map & Directions

Mount Holly Office
1848 Burlington-Mount Holly Rd
Mount Holly, NJ 08060

Toll Free: 800-759-0767
Phone: 856-254-2196
Map & Directions

Philadelphia Office
7909 Bustleton Avenue
Philadelphia, PA 19152

Toll Free: 800-759-0767
Phone: 215-928-9199
Map & Directions