MERRIMACK, N.H., Sept. 07, 2018 (GLOBE NEWSWIRE) -- Brookstone® Company, Inc. today announced that it has signed a Letter of Intent with Bluestar Alliance, LLC to acquire the brand assets of the company and to serve as a stalking horse bidder in Brookstone’s Chapter 11 restructuring. In addition, yesterday, the Bankruptcy Court for the District of Delaware approved Bluestar as the “Stalking Horse” bidder for the Company’s auction scheduled for the end of the month. Importantly, Bluestar’s improved offer includes an option for Bluestar to select a transaction that would keep up to 50 existing Brookstone stores open, with a penalty of $400,000 payable if Bluestar either does not select this option or selects it and fails to keep at least 30 stores open.
“This agreement with Bluestar is an indication of the value of Brookstone’s cherished brand, and we are particularly encouraged by Bluestar’s enthusiasm to seriously consider a bid that includes operating Brookstone retail outlets,” said CEO Piau Phang Foo. “We continue to see interest in our company from multiple potential buyers. During this time, we remain focused on serving our loyal customers, and we are grateful for the support of our dedicated employees.”
The new offer, worth approximately $56.35 million comprising $50.45 million in cash and at least $5.9 million of value in the form of readily salable inventory, substantially improves upon Bluestar’s earlier offer of $43 million. The signed Letter of Intent with Bluestar supersedes the previously-announced, $35 million proposal made by Authentic Brands Group, and is subject to negotiation of an Asset Purchase Agreement.
Bluestar’s approved stalking horse bid is subject to higher and better offers in the auction to take place on September 26, 2018. The deadline to submit competing bids is September 20, 2018.
About Brookstone
Founded in 1965, Brookstone is a U.S.-based product developer and retailer of wellness, entertainment, and travel products that are fun to discover, smart to use and beautiful in design. Brookstone products are available at its 34 airport retail locations in airports throughout the U.S., online at Brookstone.com and through select premium retailers worldwide.
About Bluestar Alliance, LLC
Founded by Joseph Gabbay and Ralph Gindi in 2006. Bluestar Alliance, LLC owns, manages, and markets a portfolio of consumer brands that span across many tiers of distribution from luxury to mass market with a heavy emphasis on department store retail brands including Tahari, Bebe, Kensie, Catherine Malandrino, Nanette Lepore, Joan Vass, Michael Bastian, English Laundry and Limited Too.
Bluestar Alliance specializes in licensing, branding and marketing consumer brand companies through extensive relationships with leading retailers, brand licensing manufacturers and a network of media and strategic partners.
Bluestar Alliance’s current international and domestic partners offer the opportunity to take a niche brand to a visible worldwide lifestyle brand. Since its inception, the company has acquired select brands with retail sales exceeding $2.5 billion. Bluestar Alliance manages a current portfolio of over 250 licensees and a growing branded retail platform of over 100 stores worldwide throughout North America, Europe, Australia, South America, Asia, Middle East and India.
Media Inquiries:
media@Brookstone.com
Abernathy MacGregor
Sydney Isaacs, sri@abmac.com, 713.817.9346
Rivian Bell, rlb@abmac.com, 310.463.9229