Shoppers try 3D personal theater headsets at a Brookstone store. Photo via instagram.com
A specialty gadget store has become the latest victim of a shifting retail landscape.
Brookstone, a retailer known for niche products like massage chairs and drones, has filed for Chapter 11 bankruptcy and plans to close all 101 of its mall stores, according to a statement from the company.
Merrimack, New Hampshire-based Brookstone said it is seeking a buyer and chose to file for bankruptcy to facilitate the sale.
The company said it has suffered declining revenue as customers increasingly shop online for the types of products it sells.
The closures will include the Brookstone at Woodland Mall in Kentwood, at 3195 28th St. SE.
Cecily McCabe, marketing director for Woodland Mall, said mall staff recently received the news, and they don't know the store’s closing date yet.
“We've enjoyed having Brookstone as a retailer here at Woodland Mall for over a decade and are always sad when a retailer must close its doors,” McCabe said.
“Leasing activity at Woodland Mall remains strong, and we look forward to welcoming another new retailer to our mix of new stores opening soon.”
Brookstone CEO Piau Phang Foo said the decision to close the stores was difficult, but the move will ultimately provide the opportunity to maintain the brand long-term under a smaller footprint.
“Today, we have taken several important steps to restructure the business and ensure that Brookstone will be well-positioned to succeed for years to come,” Foo said. “We thank all our mall store employees and managers who have contributed so much, despite an extremely challenging retail environment at malls, and our thousands of loyal customers, whom we look forward to continuing to serve.”
Foo added that the company’s 35 airport stores, e-commerce and wholesale divisions are continuing to operate successfully, and he hopes they will be attractive to a potential buyer.
This is the second bankruptcy for Brookstone in recent years, “giving the company the dubious distinction of what legal insiders call ‘Chapter 22,’” according to an article yesterday by USA Today.