US-based gift retailer Brookstone has signed a letter of intent (LoI) with Bluestar Alliance to purchase the brand assets of the company for $56.35m.
The new offer is valued at approximately $56.35m, including $50.45m in cash and at least $5.9m in the form of a readily saleable inventory.
According to the company, Bluestar placed a $43m bid to buy the gift retailer last month and the latest announcement is an improvement to the earlier offer.
The LOI also supersedes the previously announced $35m proposal made by Authentic Brands Group. The deal is subject to negotiation of an asset purchase agreement.
Brookstone CEO Piau Phang Foo said: “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.
“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.”
Bluestar has also received approval from the Bankruptcy Court for the District of Delaware to serve as the ‘Stalking Horse’ bidder for the retailer’s auction scheduled to close by the end of this month.
The approved stalking horse bid will take place on 26 September and the deadline to submit competing bids is 20 September.
The new offer will also allow Bluestar to choose a transaction that will enable it to 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.
Established in 1965, Brookstone offers a range of products through 34 airport retail locations across the US, online and through select premium retailers globally.