Brookstone Inc. has filed for Chapter 11 bankruptcy protection. The move paves the way for the retailer’s sale to Spencer Spirit Holdings, which owns mall retail chain Spencer’s and costume retailer Spirit. Spencer has agreed to buy Brookstone for about $147 million, the companies say today.

Brookstone, a multichannel retailer of specialty products and electronics, is No. 193 in the Internet Retailer 2013 Top 500 Guide. Spencer Gifts LLC is No. 724 in Internet Retailer’s Second 500 Guide.

The companies plan for Brookstone to continue to operate its 240 mall and airport stores, along with its e-commerce site and catalog and wholesale operations.

“Brookstone is a well-established iconic brand that has stood the test of time,” says Steven Silverstein, Spencer Spirit’s CEO. “With an innovative and differentiated product offering, fun and engaging store shopping experience, omnichannel platform and dedicated team of managers and associates who are passionate for the brand and committed to quality, innovation and creativity, we believe this is a great strategic fit for Spencer Spirit and are excited about the opportunity.”

Spencer operates 644 stores in the United States and Canada that sell specialty and novelty gifts and are mainly located in malls.

Brookstone posted a 7.6% year-over-year revenue decline in the third quarter of 2013, according to its most recent earnings report. Online and catalog sales in the third quarter increased 13.4% year over year, to $14.6 million. According to preliminary data from the forthcoming edition of the 2014 Top 500 Guide, Brookstone’s e-commerce sales increased about 8.9% in 2013 over the prior year, to an Internet Retailer-estimated $114.8 million.