Sailing Innovation Wins Brookstone Auction
June 4, 2014,
MERRIMACK, N.H.-Sailing Innovation, a consortium led by China-based Sailing Capital Overseas Investment fund, has been selected as the winning bidder at the auction for Brookstone.
According to a Brookstone statement, the purchase price is $135.7 million, net of cash and assumed liabilities. Subject to the approval of the U.S. Bankruptcy Court for the District of Delaware, where Brookstone filed its Chapter 11 petition in April, the sale is expected to close in early July.
Brookstone had filed for Chapter 11 initially as part of a prepackaged deal to be acquired by Spencer Spirit Holdings, parent of Spencer Gifts. The court ordered an auction for Brookstone which was held yesterday. Although Spencer Spirit was the "stalking horse" (in other words, chosen by Brookstone to make the first bid), Sailing Innovation emerged with the winning bid, according to a document filed with the bankruptcy court.
The Brookstone statement said the retailer will continue to operate as a stand-alone company and brand under Sailing Innovation. "We were looking for a strong strategic partner who shares our vision and passion for Brookstone's next phase of growth," said Jim Speltz, Brookstone's president and CEO. "We have found these qualities in Sailing and are thrilled about the opportunity to being leveraging the resources of their global partners, including Sanpower Group in China." Sanpower owns two Chinese retailers, Hiteker and Cenbest, which have more than 350 retailers across 13 provinces in China.