Report: Brookstone in Talks to Be Acquired by Spencer's
Posted on March 28, 2014There are reports that Brookstone is in talks to file for bankruptcy and then be acquired by Spencer Spirit Holdings. The Wall Street Journal says the consumer gadget retailer is preparing a bankruptcy filing this weekend with a deal in place for them to be acquired by Spencer Spirit out of bankruptcy. Spencer Spirit owns both the Spencer's novelty gift chain and Spirit, a costume retail chain. The Wall Street Journal says Spencer could pay $120 million for Brookstone.
The Chain Store Age reports that Jim Speltz, Brookstone president and CEO, issued the following statement: "While we have implemented various successful cost-cutting initiatives, the search for a strong strategic partner who shares our vision and passion was a natural progression. We think we have found that in Spencer Spirit and are excited about the opportunity to begin leveraging the resources of the two companies and popularity of the Spencer, Spirit, and Brookstone brands."
Brookstone currently operates 300 retail stores according to its website, with locations in shopping malls and airports. The Wall Street Journal report says Spencer has no plans to reduce the number of Brookstone locations if the acquisition goes through.