Quantcast
Channel: Daily Bankrupt Company Updates | Bankrupt Company News
Viewing all articles
Browse latest Browse all 4593

Brookstone, Inc. Chapter 11 Petition Filed

0
0

August 2, 2018 – Brookstone, Inc. (“Brookstone”) and nine affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 18-11781. Brookstone, a product development company and multichannel retailer that specializes in highly distinctive and uniquely designed products, is represented by Sean M. Beach of Young Conaway Stargatt & Taylor, LLP. Further Board authorized engagements include Gibson, Dunn & Crutcher LLP, as bankruptcy counsel, Berkeley Research Group, LLC, as financial advisors, and GLC Advisors & Co., as investment banker.

In documents filed with the Court, Brookstone states, “Through these Chapter 11 Cases, the Debtors intend to undertake a store closing and sale process that will allow the Debtors to shed burdensome lease agreements, right-size their inventory, and sell a streamlined and healthy business to a bidder that can operate under the Brookstone brand into perpetuity. To this end, the Debtors have entered into an agreement with Wells Fargo Bank, National Association (“Wells Fargo”) and Gordon Brothers Finance Company (“Gordon Brothers,” and together with Wells Fargo, in such capacity, the “DIP Lenders”) pursuant to which the DIP Lenders will provide the Debtors with up to $30 million in the form of a post-petition DIP Credit Facility (the “DIP Facility”) that will be secured by first priority priming liens on substantially all of the Debtors’ assets.”

In a press release announcing the filing of the Chapter 11 Petition, the Company further announced that it was seeking a buyer and was in the process of closing its remaining 101 mall store locations. Commenting on these actions, Brookstone CEO Piau Phang Foo commented, “The decision to close our mall stores was difficult, but ultimately provides an opportunity to maintain our well-respected brand and award-winning products while operating with a smaller physical footprint. Our airport, e-commerce and wholesale business divisions are operating successfully and should prove attractive to a buyer with the financial resources and vision to carry our company into the future.”

Brookstone has previously been through a Chapter 11 reorganization, filing for Chapter 11 protection in April 2104 and emerging, after a lengthy Section 363 auction won by affiliates of Sanpower Group Co., Ltd., in July 2014. Brookstones’ petition notes between 1,000 and 5,000 creditors; estimated assets between $50 million and $100 million; and estimated liabilities between $100 million and $500 million. In a schedule of the 30 largest unsecured creditors filed with the Court, Shenzhen Yuan Chuang Int’l Trading Company Ltd is listed as the largest unsecured creditor with a claim of $39.4 million.

Read more bankruptcy news.

The post Brookstone, Inc. Chapter 11 Petition Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


Viewing all articles
Browse latest Browse all 4593

Latest Images

Trending Articles





Latest Images