Brookstone Company, Inc. has filed for Chapter 11 protection in Delaware and announced plans to close down about 100 stores, including a location in Christiana Mall.
The company cited continued deterioration of traditional retail mall traffic.
“Today we have taken several important steps to restructure the business and ensure that Brookstone will be well-positioned to succeed for years to come,” said Brookstone CEO Piau Phang Foo. “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. We thank all our mall store employees and managers who have contributed so much despite an extremely challenging retail environment at malls and our thousands of loyal customers whom we look forward to continuing to serve.”
Foo added, “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 will continue to operate 35 stores in airports across the United States and its e-commerce and wholesale businesses.
Through an agreement with Wells Fargo Bank, NA, and Gordon Brothers Finance Company, the company has secured access to approximately $30 million in post-petition financing to support operations during the sale and restructuring process.
Brookstone’s legal advisors include the Delaware law firm of Young Conaway Stargatt & Taylor.
It was the second trip to Delaware bankruptcy court for the company, which has struggled with a changing retail environment,
Brookstone is a long-time tenant of Christiana and survived previous store closings by the company. The store served as a refuge for male shoppers who checked out massage chairs, portable speakers and gadgets of various types.
