Brookstone goes bankrupt, again
Brookstone has officially filed for bankruptcy protection and announced that it will be closing all of its 101 mall store locations effective immediately.
Company executives blamed the bankruptcy on a lack of mall traffic, with its Chief Executive Officer saying that it has been an "extremely challenging retail environment at malls,” forcing the company to close its doors. However, the company also emphasized that its online and airport businesses have been doing well.
Of course, lack of mall traffic affecting brick-and-mortar retailers is not new news. According to CNN, mall vacancies reached a six-year high last quarter as a wave of stores have closed its doors, including Walgreens, Bon-Ton, Sears and Kmart, Best Buy, Kay and Jared, Mattress Firm, and GNC.
"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," Brookstone CEO Piau Phang Foo said in a statement.
The quirky-gadgets retailer says that it will continue to operate its 35 airport stores, e-commerce and wholesale businesses with the intention of selling them. The company managed to secure a $30 million loan to finance its operations during the hunt for a new buyer.
Found within a bankruptcy filing, the company said that its liabilities total up to $500 million and its assets between $50 to $100 million.
This is the second time the retailer has filed for bankruptcy protection when it found a buyer after its filing in 2014. The company was later sold to a Chinese business that kept most of its more than 200 locations running at the time.
To read the entire CNN article, click here.