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Brookstone Files for Bankruptcy

Spencer’s retail chain is expected to buy Brookstone for about $147 million.

Brookstone. Photo credit: Patch file photo.
Brookstone. Photo credit: Patch file photo.

By Les Masterson

Brookstone, the mall electronic gadget and gift chain, has filed for Chapter 11 bankruptcy protection and plans to sell the stores to the owner of Spencer’s retail chain for about $147 million.

Brookstone said the Merrimack, NH-based chain has been losing millions and has laid off staff and closed stores. The company estimated that it may owe as many as 5,000 creditors as much as $500 million, reported the New York Times. 

Spencer Spirit owns the gift and gag store Spencer’s and Spirit Halloween stores.

 “The retail industry continues to evolve and staying ahead of the curve is critical,” James M. Speltz, Brookstone’s president and chief executive, said in a statement on Thursday. “A partnership with Spencer Spirit provides us the canvas upon which to sketch our next chapter.”

Read the full New York Times article.

John April 04, 2014 at 03:19 PM
High taxes = High rent.
A Delargo April 04, 2014 at 06:48 PM
What a business-friendly environment !!!
Keith Kirkwood April 04, 2014 at 08:46 PM
Really? You think high taxes killed Brookstone? Not a chance. What killed Brookstone is the fact that they sold pure crap and depended on incredibly high mark ups on that crap. Not a good business model. Has nothing to do with taxes. Plenty of other businesses, who are paying taxes under the tax rates are successful.
Procrustes' Foil April 06, 2014 at 06:09 AM
Keith, you're right! Brookstone's problems have nothing to do with taxes. The average effective business tax rate in the US is about 13 percent. No business pays 35 percent. Many don't pay anything because they have very savvy accountants. Brookstone sells junk and was mismanaged.

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