If all goes well with Brookstone’s Chapter 11 bankruptcy case, employee’s hopeful of snagging an air hockey table or arcade game could actually get some extra cash to put towards their shopping spree purchases. The employees, which includes several executives, stand to earn some $2 million in bonuses.
Selling to Spencer’s
Recently Brookstone announced its planned Chapter 11 Bankruptcy and planned sale to fellow quirky retailer, Spencer’s, for $147 million. The Spencer’s bid is still subject to higher bids through a court-overseen auction.
Smooth Transition Plan
Brookstone has plans to reward several dozen workers with bonuses in order to ensure a smooth path to a sale that brings in as much cash as possible for creditors. Half of these bonuses would be paid out upon the closing of the company’s sale. The remainder would be paid two months later.
Of these several dozen workers, four executives would earn bonuses that would be based on the sale price of the company as well as the company’s cash flow. This is roughly how it breaks down: If Brookstone closes the $147 million deal with Spencer’s the executives would share roughly $840,000 in bonuses. This does not take the cash-flow targets into account.
33 non executive employees made up of the company’s finance, e-commerce, human resources and other departments would then share up to $1.28 million in bonuses on the condition that they stick with Brookstone throughout the sale process. Individual bonuses would be calculated based on a percentage of the employee’s base salary and range. The amount ranges from $8,552 to $95,000, according to court papers. These bonuses are subject to the approval of the Wilmington, Del., bankruptcy court.
For information and guidance on Chapter 11 Bankruptcy, you need the experts at Simon Resnick Hayes, Attorneys at Law.