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