Brookstone is closing all its 101 mall stores and seeking a buyer for its 35 airport shops as part of its second bankruptcy filing in the past five years. The mall stores accounted for 52% ($138M) of the chain’s sales of $264M in 2017, down 33% from a year earlier.

In addition to retail and wholesale businesses, Brookstone has a licensing agreement in China under which Chinese conglomerate Sanpower Co. operates more than 550 stores. Sanpower owns 90% of a “Brookstone Electronics” joint venture, with Brookstone controlling the remainder and getting a 3% royalty on the cost of products purchased for sale through the branded stores, the company said. Brookstone owns 169 trademarks, including those for Big Blue Audio, Therspa and BioSense. About 70% of Brookstone’s revenue is generated from product sold under its own brand, including a wholesale business that counts Costco, Bed, Bath & Beyond and the Home Shopping Network among its retailers.

Brookstone was purchased out of bankruptcy in 2014 by Sailing Innovation US Inc., a venture between Sanpower Group and Sailing Overseas Capital Investment Fund that paid $174 million.

Contact:

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