Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds / Retailing

Brookstone Plan Confirmed

The U.S. Bankruptcy Court confirmed Brookstone’s Second Modified Joint Chapter 11 Plan of Reorganization, which provides for the Company’s sale to Sailing Innovation (US) (a consortium, led by Sailing Capital Overseas Investment Fund). Upon Plan effectiveness and under Sailing Innovation’s ownership, Brookstone will continue to operate as a stand-alone company and brand and will keep the majority of its approximately 240 retail locations open. Also under the Plan, holders of the Company’s 13.0% Second Lien Senior Notes due 2014 will receive a combination of cash and new 10.0% Third Lien notes. General unsecured claimholders will receive their pro rata share of $1.25 million. Brookstone’s interests will be cancelled without distributions, and inter-Company interests will be reinstated. James Liu, president and C.E.O. of Sailing Capital Advisors (Hong Kong) Limited, states, “We are committed to strengthen Brookstone’s operations in the U.S. To this end, we will work with Brookstone’s management and team to enhance R&D capabilities, blaze new trails with cutting-edge products, rejuvenate its stores and motivate the sales team. There remains a great thirst all around the world for what Brookstone can offer. We will also expand Brookstone’s footprint beyond the US. As part of this strategy, our partner, Sanpower Group, will assist Brookstone in penetrating the fast-growing China market as well as establishing a presence in the UK.” This specialty retailer filed for Chapter 11 protection on April 3, 2014, listing $406 million in pre-petition assets.

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