Brookstone, the retailer known for its consumer gadgets, massage chairs and other home furnishings, filed for Chapter 11 bankruptcy protection Thursday, with plans to sell itself to the owner of the Spencer’s retail chain for about $147 million.
The filing caps a challenging period for Brookstone, which has laid off workers and closed stores amid a decline in sales. The company, which is privately held, said that it lost $18 million in the 13 weeks ended Sept. 28, compared with a loss of $12 million in the period a year earlier.
Brookstone now hopes that a combination with Spencer Spirit Holdings will provide a path toward profitability. Under the agreement with Spencer Spirit, Brookstone will continue to operate its stores in malls and airports, as well as its catalog, website and wholesale business, under the Brookstone brand.
The agreed purchase price includes $120 million in cash, $7.5 million in new notes and about $18.5 million of assumed liabilities, a spokeswoman for Brookstone said.