Tremulous business at Brookstone
Recently reports have circulated that the national specialty retailer, Brookstone, may consider filing for bankruptcy protection in the near future. It was reported that the company missed an interest payment last month on an approximately $125 million debt, with the total debt amounting to approximately $200 million.
The company said in a statement sent to The Mexico Ledger today, "In order to ensure Brookstone’s successful future, the company is in active discussions with its ad hoc bondholder group and senior lender with respect to refinancing and/or restructuring its bond and other debt, and improving its capital structure. These discussions include the consideration of new investors in the company. However, definitively today, there is no agreement with any potential investor, nor has the company determined if a court-supervised restructuring will be undertaken. Importantly, over the course of its rich history, Brookstone has had various owners and investors who recognize the asset value and brand recognition the company offers, which remains the case today. Brookstone looks forward to serving its customers for years to come."
In an additional statement Brookstone CEO Jim Speltz said, "During these discussions, our valued customers and employees can be assured that Brookstone will remain open for business in 250+ malls and airports. Our goal is to reduce our debt and bring our operations better in line with today’s marketplace. This includes continuing to bring innovative products to market and remaining an employer to be proud of.”
Originally a catalog company, Brookstone presently operates a Direct-Marketing business that includes catalogs, e-mail and affiliate marketing and an online site offering hundreds of products, including high-tech devices and specialty items. Brookstone began in 1965 as a small classified advertisement for "hard-to-find tools" in Popular Mechanics Magazine. The company's first retail store opened in 1973. Today, Brookstone manages operations through its headquarters in Merrimack, New Hampshire and in its Distribution Center and Customer Care Center in Mexico.