Brookstone
| Company type | Private |
|---|---|
| Industry | Retail |
| Founded | 1965 |
| Founder | Pierre de Beaumont, Mary de Beaumont |
| Headquarters | Merrimack, New Hampshire , United States |
Area served | United States, China |
| Products | Remote-controlled helicopters, drones, alarm clocks, smartwatches, massage chairs, speakers, tablets, accessories, blankets, pillows, lifestyle products |
| Parent | Sailing Capital and Sanpower (since 2014) |
Brookstone is a retail chain with operations in both the United States and China, established in 1965 initially as a mail-order business specializing in unique tools. The company's inaugural brick-and-mortar location was launched in 1973 in Peterborough, New Hampshire. Its corporate headquarters are situated in Merrimack, New Hampshire.
The product lineup at Brookstone is varied, encompassing items such as remote-controlled helicopters, drones, alarm clocks, smartwatches, massage chairs, speakers, tablets and related accessories, blankets, pillows, alongside other lifestyle merchandise. The majority of these goods are developed and marketed under the Brookstone brand. Retail outlets are predominantly found within airport terminals, supported by a robust online platform. A distinctive feature of the stores is the opportunity they provide customers to interact with and test products before making purchases.
On April 3, 2014, Brookstone initiated Chapter 11 bankruptcy proceedings and pursued acquisition by the parent company of Spencer Gifts while continuing its store operations. Subsequently, in June 2014, the company was acquired by Chinese investment firm Sailing Capital together with conglomerate Sanpower for an amount exceeding $173 million. Brookstone successfully emerged from bankruptcy protection in July of that year.
On August 2, 2018, Brookstone declared that it would shut down all mall-based locations to concentrate on its e-commerce presence and airport stores amid financial restructuring efforts. Just days later, on August 6, 2018, the company filed for Chapter 11 bankruptcy once more and proceeded to close all 101 retail outlets across the United States.
Founding
Brookstone was established in 1965 by Pierre de Beaumont and his wife Mary with an initial investment of $500. After acquiring accounting skills through correspondence courses, the couple began distributing catalogs featuring specialty items to hobby enthusiasts from their farmhouse located in the Berkshires. The company’s name was inspired by their farm’s name. Pierre’s passion for inventing played a significant role in shaping Brookstone’s early focus on offering hard-to-find yet practical tools. Originating as a catalog-based business promoted through a classified advertisement in Popular Mechanics, growing demand for distinctive products eventually led to the creation of physical Brookstone retail outlets.
1970s and 80s
The first Brookstone store opened its doors in New Hampshire in 1973. The success experienced encouraged further expansion throughout the following decade; however, most customers continued to engage via catalogs.
In March 1980, Quaker Oats Company acquired Brookstone through a stock transaction valued at $9 million.
Throughout the 1980s, Brookstone broadened its in-store product assortment beyond catalog items to include categories such as travel gear, leisure products, technology gadgets, audio equipment, and games—offering customers interactive experiences. This diversification helped boost customer engagement and sales figures.
To address mounting debt concerns, Quaker announced plans in August 1986 to divest its specialty retail division including Brookstone. A consortium made up of Greylock Management, Duncan, Cook and Co., Fidelity Ventures, alongside Brookstone’s own management team acquired the company.
By 1987, Brookstone achieved record sales totaling $93 million but reported a net loss of $9.7 million. The company then shifted focus toward merchandise appealing to women and redesigned stores to create an ambiance akin to a "men's clubhouse," featuring more open layouts with less clutter. These strategic adjustments resulted in a positive net income of $4.9 million on sales amounting to $104.6 million during the early 1990s.
Additionally, Brookstone optimized operational efficiency by discontinuing its retail computer programming staff as existing systems sufficiently supported evolving retail demands—yielding substantial annual cost savings.
1990s
In 1992, Brookstone introduced kiosks within malls, offering a curated selection of its merchandise in separate spaces. This move helped propel sales to $143.7 million. By 1993, the company had expanded to approximately 100 stores across the United States, which accounted for 85% of its total income; kiosks and its catalog contributed the remaining 15%.
Until 1994, Brookstone managed two distribution centers before opening an additional facility in Missouri, enhancing both delivery speed and customer support. By the decade’s end, the retailer had grown to 150 stores in 32 states, operated over 100 kiosks, and launched an e-commerce platform. Throughout the 1990s, Brookstone transitioned its emphasis from tools toward electronic products while continuing to specialize in distinctive merchandise.
21st century
During the mid-2000s, Brookstone redesigned its retail locations by incorporating tile flooring and track lighting to improve the shopping atmosphere.
In January 2014, the company failed to make an interest payment on $125 million of debt tied to its original Osim/Childs/Temasek leveraged buyout. This triggered negotiations with investment groups such as Hilco Global and Tiger Capital Group LLC regarding potential investment or acquisition opportunities. By March, Spencer Spirit Holdings, owner of Spencer Gifts, agreed to purchase Brookstone from bankruptcy for $120 million. The company officially filed for bankruptcy protection on April 3, 2014.
In June 2014, Chinese investors Sailing Capital and conglomerate Sanpower purchased Brookstone for more than $173 million. The company successfully exited bankruptcy proceedings in July 2014.
Brookstone declared its second bankruptcy filing within four years in August 2018 and announced the shutdown of all mall locations; however, airport outlets and online sales remained active.
Competition
Brookstone’s primary competitors include The Sharper Image, which filed for bankruptcy in 2008 but continues operations through its website and catalog sales. Another rival is Hammacher Schlemmer, initially a New York-based hardware store recognized for its catalog offerings.
Employment
In November 2009, Brookstone attracted media scrutiny after terminating Massachusetts employee Peter Vadala, who reportedly objected to a colleague’s comments about her same-sex fiancée. The company enforces a strict zero-tolerance stance against discriminatory harassment. Vadala contended during a Fox & Friends interview that Christians were excluded from this policy’s protections.
Frog-O-Sphere
Brookstone’s Frog-O-Sphere—a self-cleaning aquarium housing two African dwarf frogs—became the subject of animal welfare criticism. In 2009, PETA released undercover footage accusing supplier Wild Creations of mistreating frogs through inadequate water quality, insufficient feeding schedules, and fungal infections. Brookstone refuted these claims.