(Fixes spelling of officer in fifth paragraph)
By Casey Sullivan
June 23 Retailer Brookstone Inc
announced on Monday that a federal bankruptcy court judge in
Delaware has approved its sale to a consortium of Chinese
investors that will run its 240 stores after exiting bankruptcy.
Sailing Innovation Inc will acquire Brookstone for $135.7
million, net of cash and assumed liabilities, as the New
Hampshire company expects to emerge from bankruptcy by early
July, according to a Brookstone announcement.
The deal was approved by U.S. Bankruptcy Court Judge Brendan
Shannon in Wilmington three months after Brookstone filed for
Chapter 11 bankruptcy protection when it saw sales fall as
shoppers cut discretionary spending.
Brookstone sells products ranging from massage chairs to
bathroom slippers through stores in malls and airports across
the United States and Puerto Rico.
Jim Speltz, Brookstone's president and chief executive
officer, said in a statement that Brookstone had restructured
its balance sheet, improved its capital structure and "found a
strategic partner who shares our vision and is committed to our
James Liu, president and CEO of Sailing, said in a statement
that Sailing was committed to strengthening Brookstone's
operations in the United States and believes Brookstone is well
positioned to expand outside the United States.
"As the first step, Sailing will muster and lead global
resources to assist Brookstone in penetrating markets in China
and the UK," said Liu.
Brookstone's legal advisor for the restructuring is K&L
Gates and its financial advisor is Deloitte CRG, while the legal
advisor for Sailing is Gibson Dunn & Crutcher and the financial
advisor is Houlihan Lokey. Jefferies LLC is the company's
(Reporting by Casey Sullivan in New York; Editing by Lisa