Struggling Brookstone Receives Help from GE
In 2012 the total amount of outstanding large business loans (greater than $1 million) was $1.89 trillion.
While loans are not as helpful as funding becuase they have to be paid back with interest, they are still vital to the survival of many companies including one product development and specialty retailer.
A senior credit facility, for those unfamiliar with the term, is a secured loan that is backed by collateral from the borrower (in this case Brookstone) which can be sold if the borrower defaults on a payment or is unable to repay the full amount that was borrowed.
The financing is stated to be used in supporting the company’s recent acquisition by Chinese investment firm Sailing Capital and Chinese conglomerate Sanpower as well as help Brookstone with general working costs.
“GE Capital helped to develop a financing solution that was tailored to our needs,” said Jim Speltz, president & CEO of Brookstone. “Their in-depth retail experience will continue to support our objectives while we remain focused on delivering a robust pipeline of innovative and useful products to our customers.”