Report says Merrimack's Brookstone considering bankruptcy
According to the Wall Street Journal, Brookstone may file for bankruptcy protection in the coming weeks, as it speaks with at least two firms about buying or investing in the company.
The possible bankruptcy comes after repeated changes for the Merrimack-based company housed at 1 Innovation Way. In early 2013, Brookstone laid off about 71 employees from its Merrimack site, which represented about 23 percent of the local workforce.
According to the Journal, the local gadget store is in discussions with Hilco Global and Tiger Capital Group LLC, but nothing official has been determined while all of the company’s options are being considered.
According to the company’s third quarter report for 2013, consolidated net sales decreased 6.5 percent to $268.3 million and comparable-store sales decreased 3.6 percent. In addition, Brookstone had “cash borrowings outstanding under its senior credit facility of $65.4 million,” said the report, adding cash on-hand at the end of the third quarter in 2013 was about $1.1 million compared to $1.3 million in the same quarter in 2012.
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