Gadget emporium goes Chapter 11

Slammed by falling mall traffic in 2014-15 and with losses mounting, gadget seller Brookstone starting in 2016 tried a novel and last-ditch remedy: It asked vendors if it could pay in Chinese yuan.

The vendors said no — and some even sensed the dire situation and, according to court papers, stopped supplying Brookstone, which is owned by Chinese company Sanpower Group.

The dramatic, and ultimately futile, move set the stage for Thursday’s Chap- ter 11 filing by the once-popular chain.

In June, Sanpower put the screws to management, saying it would no longer finance the money-losing operation, court papers said.

Sanpower lent Brookstone a total of $87 million in 2016 and 2017.

In an attempt to keep the 53-year-old retailer afloat, Sanpower said it will close all 101 mall stores and circle its wagons around its Web site and its 35 airport stores.

Sanpower will then try to find a buyer for the Brookstone airport stores, it said in court papers filed in Delaware.

Bankruptcy lawyer Eric Snyder, who is not involved in the Brookstone case, said the offer to pay vendors in yuan was novel — but never stood a chance.

“[N]o American company wants to be paid in Chinese currency,” said Snyder, a partner at Wilk Auslander. “The vendors are in the US, and Brookstone is based in New Hampshire.”

Brookstone Chief Financial Officer Greg Tribou said that “sourcing of products and supply chain difficulties” led to the filing.