Brookstone has filed for Chapter 11 bankruptcy protection after securing approximately $30 million in post-petition financing, according to numerous published reports. As part of a planned restructuring, Brookstone will shutter its 101 mall-based locations. The retailer hopes to continue operating its e-Commerce, wholesale and approximately 35 airport stores, which have been performing well, with an eye toward a future sale of these assets.
Brookstone has lined up a $30 million loan to keep the doors open at the airport stores during the bankruptcy case.
"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," said Brookstone CEO Piau Phang Foo in a statement reported by CNBC.
This will be the second bankruptcy for Brookstone, which began as a catalog retailer in 1965. In 2014, the chain filed for Chapter 11 protection and emerged with approximately 240 stores under the ownership of a consortium of Chinese investors. Brookstone’s mall locations have suffered from the fall-off in foot traffic that has affected numerous brick-and-mortar retailers.