Brookstone files for bankruptcy protection as it shuts 101 mall stores

Brookstone Inc (NASDAQ:BKST) has announced plans to file for Chapter 11 bankruptcy protection amid hopes of finding a buyer for the gadget and gift chain store.

The New Hampshire-based company is shutting down its remaining 101 mall stores, located across the US, due to a slowdown in mall traffic and buyers shopping online.

Brookstone, which is owned by Chinese conglomerate Sanpower, has a further 35 locations in US airports which it will continue to run and put up for sale, according to Reuters.

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The company has lined up a US$30million loan to help it run its stores in airports while it undergoes its bankruptcy proceediung.

The specialty retailer, which allows people to test out massage chairs and headphones, has been met with success in Asia, but its US business has continued to struggle, Reuters reports.

“The decision to close our mall stores was difficult, but ultimately provides an opportunity to maintain our well-respected brand and award-winning products while operating with a smaller physical footprint,” Brookstone CEO Piau Phang Foo said in a statement.

Brookstone has stores in the US and China and previously filed for bankruptcy protection and emerged in 2014 under the ownership of a consortium of Chinese investors.

Story by ProactiveInvestors