Brookstone is filing for Chapter 11 bankruptcy protection and announced it would be closing 101 mall locations, claiming declining mall traffic as the culprit.
“Today we have taken several important steps to restructure the business and ensure that Brookstone will be well-positioned to succeed in years to come,” said Piau Phang Foo, CEO of Brookstone in a press release. “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.”
Foo said that Brookstone’s airport, ecommerce and wholesale businesses are operating successfully and should prove attractive to a buyer with the financial resources and vision to carry the company forward.
Business Insider reported that this is the second time the company filed for bankruptcy since the recession in 2007-2009. In 2014, a group of Chinese buyers powered by Sanpower Group and Hong Kong-based private equity firm Sailing Capital bought the company for $174 million.