Specialty retailer Brookstone Holdings Corp. has received bankruptcy-court approval to sell ownership of the restructured company at auction, with a $146.3 million offer from a Spencer Spirit Holdings Inc. affiliate setting the floor price, the Wall Street Journal reported today. Bankruptcy Judge Brendan Shannon on Friday approved the rules to govern the Brookstone auction, including a $3.7 million breakup fee and up to $500,000 in expense reimbursement to Spencer's if it is bested by another offer. The Spencer's offer is worth $120 million in cash plus $75 million in notes and assumption of liabilities. The auction is scheduled for June 2, and competing bids are due May 28. Those bids must be worth at least $250,000 more than the Spencer's offer and cover the cost of Spencer's breakup fee and expense reimbursement.
