MERRIMACK — Speciality retailer Brookstone, with corporate headquarters at 1 Innovation Way, announced Thursday that it has filed for Chapter 11 bankruptcy and has completed a stock purchase agreement with an affiliate of Spencer Spirit Holdings for $147 million.
Jim Speltz, Brookstone president and CEO, said the deal would have no impact on customers, that "business will continue uninterrupted," and that all existing customer programs, including warranties, gift cards, returns and exchanges, would be honored.
The company also plans to maintain employee benefit and payroll as they currently exist, he said.
Brookstone's largest creditors support the deal to salvage the retailer that has seen declining sales in recent years.
The company will continue to operate its mall and airport stores, catalog, website, and wholesale channels, under the Brookstone brand with current employees remaining at their respective locations, according to a company statement.
"This agreement will leverage the brand recognition and resources of our two companies," Speltz said in a news release. "The retail industry continues to evolve, and staying ahead of the curve is critical. A partnership with Spencer Spirit provides us the canvas upon which to sketch our next chapter."
"This is a great strategic fit for Spencer Spirit and we are excited about the opportunity," said Spencer Spirit CEO Steven Silverstein.
Brookstone operates approximately 240 stores nationwide, typically in high-traffic regional shopping malls and airports.
Spencer's products are tailored to reflect popular themes and trends for young adults. The company operates 644 Spencer stores in 49 states and Canada. Spirit is a seasonal Halloween retailer that operates temporary stores in 48 states and Canada