Retail store company Brookstone announced Thursday that it is filing for Chapter 11 bankruptcy protection and will be shutting down all 101 stores across the United States, citing “continued deterioration of traditional mall traffic” hurting sales as the primary reason.
The Company said it is looking for a buyer for its 35 airport locations, e-commerce, and wholesale businesses, and will continue operations in these sectors.
“Our airport, e-commerce and wholesale business divisions … should prove attractive to a buyer with the financial resources and vision to carry our company into the future,” Brookstone Chief Executive Officer, Piau Phang Foo, said in a statement.
This is not the first time Brookstone has filed for bankruptcy. The Company found itself in a similar situation in 2014, when it filed for bankruptcy protection and was later sold to Chinese conglomerate Sanpower Group which kept 240 of its stores open after the acquisition. Brookstone Chief Financial Officer, Greg Tribou, stated in a court filing that Sanpower “provided limited funding” to the Company, adding another reason as to why the Company was sent into bankruptcy.
"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," said Foo. The Company has been losing sales as people are increasingly shopping online at sites such as Amazon and other e-commerce places. This trend in online shopping has caused other major retailers to file for bankruptcy as well, such as major toy retailer Toys ‘R’ Us.
The Company said its 2017 sales were 33% lower than 2016, totaling USD 351 Million.