MERRIMACK, N.H., April 3, 2014 (GLOBE NEWSWIRE) -- Innovative product development company and multi-channel lifestyle retailer Brookstone, Inc. ("Company") announced today that it has filed for relief under Chapter 11 in the United States Bankruptcy Court ("Court") for the District of Delaware and has entered into a plan sponsorship and stock purchase agreement ("Agreement") with an affiliate of Spencer Spirit Holdings for an aggregate purchase price of approximately $147 million. To facilitate the Agreement, the Company has obtained the support of the holders of its outstanding bonds and debtor-in-possession ("DIP") financing.
As previously announced, the agreement contemplates that Brookstone, headquartered in New Hampshire, will continue to operate its mall and airport stores, catalog, website, and wholesale channels, under the Brookstone brand with current employees remaining at their respective locations.
"This agreement will leverage the brand recognition and resources of our two companies," said Jim Speltz, President and Chief Executive Officer, Brookstone. "The retail industry continues to evolve and staying ahead of the curve is critical. From our mail-order roots to the expansion of our website channel, Brookstone has been a leader in developing new and exciting opportunities for growth. A partnership with Spencer Spirit provides us the canvas upon which to sketch our next chapter."
Steven Silverstein, Spencer Spirit's Chief Executive Officer, stated, "Brookstone is a well established iconic brand that has stood the test of time. With an innovative and differentiated product offering, fun and engaging store shopping experience, omni-channel platform, and dedicated team of managers and associates who are passionate for the brand and committed to quality, innovation and creativity, we believe this is a great strategic fit for Spencer Spirit and are excited about the opportunity."
Employees, customers, vendors and other partners can be assured that day-to-day operations will continue uninterrupted. Brookstone will honor all existing customer programs, including warranties, gift cards, returns and exchanges, and maintain employee benefit and payroll programs.
Brookstone's legal advisor for the restructuring is K&L Gates LLP and its financial advisor is Deloitte CRG. Jefferies LLC is the Company's investment banker, and has provided advice on the restructuring and sale of the Company. Spencer Spirit's legal advisor is Cole Schotz, P.A. and its financial advisor is PricewaterhouseCoopers LLP.
About Brookstone:
Brookstone is an innovative product development company and multichannel lifestyle retailer. Brookstone operates approximately 240 stores nationwide and in Puerto Rico. Typically located in high-traffic regional shopping malls and airports, the stores feature unique and innovative consumer products. Brookstone also operates an e-commerce business that includes the Brookstone catalog and Brookstone.com. Fans of Brookstone are encouraged to Like Brookstone on Facebook, follow on Twitter and The Fancy, and pin on Pinterest.
About Spencer Spirit Holdings:
Spencer Spirit Holdings is a leading specialty retailer offering unique merchandise in fun and engaging store environments through two principal concepts, Spencer's and Spirit. Founded in 1947, Spencer's is a specialty lifestyle retailer of unique products tailored to reflect popular themes and trends for young adults. As of December 31, 2013, the Company operated 644 Spencer stores in 49 states and Canada. Founded in 1983, Spirit is a seasonal Halloween retailer that operated 1,052 temporary stores in 48 states and Canada in 2013.