Brookstone Inc., the retailer of gadgets such as virtual keyboards and personal drones, filed for bankruptcy to pursue a $147 million sale to Spencer Spirit Holdings Inc. as online competitors cut into its business and consumers spend less on non-essentials.

Brookstone, which was taken private in 2005 by a group including Singapore’s Temasek Holdings Pte, will continue to operate with current employees and managers, according to a statement today. The Merrimack, New Hampshire-based company said its bondholders support the sale. Spencer, a novelty retailer, would pay $120 million in cash and $7.5 million in new notes and assume about $18.5 million in liabilities.

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