Authentic Brands Group (ABG) has submitted a $35 million stalking horse bid for bankrupt retailer Brookstone’s intellectual property, according to bankruptcy court documents.

ABG’s offer will serve as the basis for an auction of Brookstone’s assets scheduled for Sept. 24 in U.S. Bankruptcy Court, Wilmington, DE.

Brookstone filed for bankruptcy on Aug. 2 and plans to close its 101 mall stores, but ABG is “very interested in finding a partner” to operate those stores as well as 35 airport locations for which Brookstone has been seeking a buyer, ABG EVP Jeff Branman said in a letter of intent dated Aug. 24. ABG also said it wants to hire Brookstone employees involved in licensing and marketing the company’s IP, which includes 169 trademarks, including those for Big Blue Audio, Therspa and BioSense.

ABG said it can complete definitive purchase documents within seven days, and that the acquisition would be financed using cash, a credit line and incremental bank financing. If Brookstone accepts a different offer, ABG said it would receive a $900,000 break-up fee and reimbursement of up to $500,000 in expenses. A Brookstone purchase would be the most recent ABG acquisition of a struggling brand; earlier this year it bought Nautica and Nine West.

Brookstone’s bankruptcy filing was its second in four years. It was purchased out of bankruptcy for $174 million in 2014 by Sailing Innovation US Inc., a venture between Sanpower Group and the Sailing Overseas Capital Investment Fund.

Contacts:

Brookstone, Greg Tribou, Chief Financial Officer, 603-880-9500