Genuine Brands Group has offered to purchase Brookstone’s staying possessions.
A licensing company understood for purchasing up formerly struggling retail brands is trying to resuscitate device and gifts chain Brookstone, which said it plans to close 101 mall stores.
Authentic Brands Group, which has actually been referred to as a “hospital” that brings back iconic brand names, made a $35 million initial bidder deal today to obtain the assets of Brookstone, the retailer that declared Chapter 11 bankruptcy defense this month.
Brookstone announced it would close all 101 of its shopping mall shops and look for a purchaser for its 34 shops located in airports throughout the nation. It stated in a statement that Authentic Brands’ proposal “includes an expressed interest in identifying a partner to keep and make the most of Brookstone’s renowned retail organisation.”
Brookstone, based in Merrimack, New Hampshire, called the quote a “baseline” ahead of a set up Sept. 24 auction “that goes through greater and better deals.” The company said it expects the auction to be competitive.
Genuine Brands Group is a New York City-based brand advancement, marketing and home entertainment business. It owns 33 brand names, consisting of Hart Schaffner Marx, Hickey Freeman, Juicy Couture, Aeropostale, Shaquille O’Neal and Marilyn Monroe clothes, shoes or fashion jewelry lines. They deal with physical and e-commerce merchants to sell the branded items. It recorded $7.6 billion in retail sales last year, according to its website.
Expert Marie Driscoll wrote in the Robin Report, a provider of retail analysis, that Genuine Brand names resembled a “brand name hospital, where renowned brands that lost their appeal get dusted off.”
Driscoll wrote that “ABG is unencumbered with physical properties that make rotating difficult,” describing that ABG runs brands and not stand-alone stores. “This is an appealing business model and one of the disruptive forces in retail today.”
Brookstone, which was founded in 1965, reported properties of $50 million to $100 million in its insolvency filing, but liabilities in between $100 million and $500 million.
The company, which filed the petition in the Personal bankruptcy Court for the District of Delaware, had actually formerly declared bankruptcy in 2014 and was offered to financiers in China.
Editor’s note: Story has been upgraded to fix Marie Driscoll’s name.