Around the Net

Sharper Image Files For Bankruptcy Protection

Sharper Image Corp., the 31-year-old, 184-store chain known for its nifty gizmos and gadgets--and its ability to cause sticker shock--"is in a severe liquidity crisis," according to a Chapter 11 filing submitted to the U.S. Bankruptcy Court in Wilmington, Del. The company is seeking permission to shutter 90 stores and sell off inventory.

In its heyday, customers would excitedly scan the latest Sharper Image catalog or flock to its stylized stores to test and tinker with thousand-dollar massage chairs or hundred-dollar headphones. The filing follows a descent sparked by a critical review of its hottest product--the Ionic Breeze line of air purifiers--in Consumer Reports magazine in 2002.

In addition to those challenges, high-tech products have lost much of their novelty and have become the purview of discounters like Target, Wal-Mart and Costco, says Kurt Barnard, president of Retail Forecasting LLC. The company also has faced growing competition from stores like Hammacher Schlemmer and Brookstone with similar models.

advertisement

advertisement

Read the whole story at San Francisco Chronicle »

Next story loading loading..