It's the end of The Sharper Image era, with a consortium of investors agreeing to buy the company for $49 million, a reduction from the earlier agreed upon price of $51.25 million. At its peak, Sharper Image had a market capitalization of more than ten times that amount.
The company can still earn up to an additional $1.5 million depending on the success of the deal, but the earn-out is unlikely to be achieved. The company filed for bankruptcy in February, and the cash from the sale will be distributed among the creditors, with stockholders expected to receive nothing. The buyers include Gordon Brothers Retail Partners LLC, GB Brands LLC, Hilco Merchant Resources LLC and Hilco Consumer Capital LLC.
The St. Petersburg Times quotes a Hilco representative suggesting that this is not the end of the company: "We see a lot of potential expanding this brand, especially internationally."
Of course, actions speak louder than words, and the firms are liquidating the company's remaining inventory and plan to close every one of the remaining 86 stores.
Lawsuits surrounding the Ionic Breeze products combined with declining sales sank this company, and a turnaround in the current retail environment would be impossible for this purveyor of intriguing -- but useless -- gadgets.
Is the market always right?
Comfort Zone Investing: How this all might play out
Stock picks and pans for troubled times: AAPL, COST, EWBC, IBM, YUM, PG ...
Reader Comments (Page 1 of 1)
6-07-2008 @ 6:42PM
letty said...
Few years back I stopped at a Sharper Image store in Northern Virginia. I purchased the coolest caller ID globe in blue. When someone calls it is digitally shown and it even shows the holidays. I love it!!!!! and guest coming in our home notice it right away and automatically say, "Wow! that is so cool."
6-07-2008 @ 6:42PM
Roger Phillips said...
How about a new store named COUCH POTATO.
6-07-2008 @ 7:13PM
Judith said...
Even though I couldn't afford to buy anything from Sharper Image, I did like to browse there. Maybe if they had lowered their prices. That's really sad...
6-07-2008 @ 7:27PM
Doctor Bob said...
They should do like CompUSA. Close their costly retail stores and go strictly mail order. It's working for CompUSA.
6-07-2008 @ 7:56PM
Doc said...
If they focus on marketing and selling energy saving devices and alternative energy systems they will see growth greater than they ever did in the past. The name is well known for innovation.
6-13-2008 @ 2:41PM
Austin Chu said...
I work for a company that manages and tracks gift cards, and I've been following this issue for sometime now on savvywallet.com. Leveragecard.com initialized a bankruptcy policy for consumers that purchased The Sharper Image gift card on our website. You can email me at austin@leveragecard.com and I can check our records to see if your card was purchased through us. If it is, then you're in luck and you can swap it with any of our other retailers.
6-25-2008 @ 4:33PM
Austin Chu said...
Below are the ways to file a claim to get your gift card back. Bear with me, it's long:
1. File a claim with the federal bankruptcy court. Follow these steps:
A. Because The Sharper Image's bankruptcy was filed in Delaware, you have to visit the Delaware Bankruptcy Court Page. Scroll down to Sharper Image.
B. Fill out Form 10 from the Federal Bankruptcy Court. (http://www.uscourts.gov/bankruptcycourts.html)
C. Download, print and sign it, and mail it to:
Kurtzman Carson Consultants, LLC (http://www.kccllc.com/)
Jonathan Carson
2335 Alaska Avenue
El Segundo, CA 90245
310-823-9000
310-823-9133
D. If you have trouble call the Bankruptcy Judges Division at 202.502.1900. Explain your situation, and they will walk you through the process. You will get a person on the phone as well.
E. Take these steps to file a claim with the Federal Bankruptcy Court
2. Take advantage of the offer from competitor The Sharper Image's competitor, Brookstone, to give a 25 percent discount to anyone who surrenders their Sharper Image gift card or certificate.
3. Try filing a claim with your credit card issuer, if you used a credit card to buy a Sharper Image gift card
A. Request a refund from the card issuer.
B. American Express is 'working on behalf' of it's card holders who submit such claims, even if the submission is beyond the 60 day statutory limit. This will be on a case by case basis.
C. Also, AMEX cardholders who opted for the Sharper Image gift card as membership rewards programs can return it and have their rewards points re-credited to your account. MUST DO IT WITHIN 60 DAYS
4. Also if a card that you gave or received was purchased from LeverageCard.com, Leverage has a bankruptcy policy that allows cards that are purchased via LeverageCard.com to be replaced with any retailer of choice. You can read more here. (http://findarticles.com/p/articles/mi_pwwi/is_200802/ai_n24330330)