There Is No Charge For The First Consultation: 903-266-1843

Law Office of Gordon Mosley
A Bankruptcy & Consumer law Firm
20 Years Experience Helping People Gain A Fresh Start

Retail giant Brookstone seeks Chapter 11 Bankruptcy protection

In today's economy, many retail establishments that were extremely successful in the past have experienced a downturn. The current economic condition has forced many companies in Texas and other parts of the United States to look for debt relief by submitting a bankruptcy filing according to the guidelines of Chapter 11 of the U.S. Bankruptcy Code. Brookstone, a well-known retail chain whose stores are a common sight in shopping malls around Texas, announced it filed for bankruptcy under Chapter 11 as part of its $147 million sale to Spencer Spirit Holdings.

Although Brookstone is facing a tough time financially, it has promised to keep 240 stores open so that business can continue as usual. One of the distinct advantages of filing Chapter 11 bankruptcy is that it allows businesses to continue operating unhindered.

Brookstone, once a favorite retail outlet among shoppers for its large selection of popular and unusual gadgets, faced a tough time during the recession. Its fortunes failed to turn around, especially because of the competition faced from online retailers. Sales figures steadily declined over the years and in the last quarter, Brookstone saw a sharp 7 percent dip.

According to its filing, Brookstone has between $100 million and $500 million in liabilities. Filing bankruptcy under Chapter 11 will help Brookstone to defer payments against some of these debts. The reorganization process may also allow a lower interest rate on secured debts.

The company announced that it would be taken over by Spencer Holdings. Under Chapter 11 bankruptcy protection, the court may allow Spencer to buy the assets, free of liens and interests.

A business owner looking for debt relief may consider consulting an attorney to understand and navigate the various complexities of filing a Chapter 11 bankruptcy. It might help a floundering business make an intelligent decision regarding the future.

Source: ABC News, Mall Staple Brookstone Seeks Bankruptcy Cover, April 3, 2014

No Comments

Leave a comment
Comment Information

Start Fresh - We Can Help!

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Contact Information

Law Office of Gordon Mosley

Tyler Office
4411 Old Bullard Rd.
Tyler, TX 75703

Phone: 903-266-1843
Tyler Law Office Map

Gun Barrel City Office
431 N Gun Barrel Ln
Suite 112
Gun Barrel City, TX 75156

Phone: 903-266-1843
Map & Directions

  • Local: 903-266-1843

  • Fax: 903-581-4038

  • Facebook
  • Google Plus
  • Linkedin
  • Twitter
  • Review Us