Sharper Image files Ch. 11
Wilmington, Del. -- Furniture Today, February 24, 2008
— Catalog, store and online retailer Sharper Image filed for Chapter 11 bankruptcy protection last week in U.S. Bankruptcy Court here.
Massage chair manufacturer Human Touch (Interactive Health) is listed as Sharper Image's seventh largest creditor in the bankruptcy filing and is owed $966,000.
In recent years, publicly traded Sharper Image's success depended substantially on a few products, such as air purifiers and massage chairs, the bankruptcy filing said. Massage chairs accounted for 5.2% of revenues in 2007, 6.3% of revenues in 2006 and 9.1% of revenues in 2005, according to court documents.
The company has experienced steady sales declines since 2004, resulting in net losses in the past three fiscal years. Sales in January were down 23% from the same month in 2007.
Its filing lists assets totaling $251.5 million and liabilities of $199 million as of Jan. 31, and cash equivalents of $700,000.
Sharper Image's comparable store sales declined in each of the past three fiscal years, down 13% in 2007, 25.4% in 2006, and 16% in 2005, its filing said.
Sharper Image, headquartered in San Francisco, operates 184 stores in 38 states. It plans to close about 90 unprofitable stores after the sale of their inventories.
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Sharper Image files Chapter 11
Feb 21, 2008
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