March 27 (Reuters) - Specialty retailer Brookstone Inc is preparing to file for bankruptcy as early as Sunday with a plan in place to be bought by another specialty retailer, the Wall Street Journal reported, citing people familiar with the matter.
Spencer Spirit Holdings Inc, which owns the retail chain Spencer's and costume retailer Spirit, has been in discussions with Brookstone for weeks and both retailers are looking to finalize sale paperwork over the weekend leading up to a bankruptcy filing, the report said. (link.reuters.com/jeb97v)
Brookstone could not be contacted by Reuters outside regular U.S. business hours.
Brookstone sells products ranging from massage chairs to bathroom slippers and operates more than 300 stores throughout the United States and Puerto Rico.
Brookstone was taken private in 2005 by a group led by Osim, Asia’s biggest maker of massage chairs, in a $445 million deal. The group included Temasek Holdings and private equity firm JW Childs Associates LP.
Spencer Spirit Holdings is expected to pay about $120 million for Brookstone, which has debt of about $140 million, according to the Journal. (Reporting by Arnab Sen in Bangalore; Editing by Gopakumar Warrier)