Wednesday, February 20, 2008

Blurrier Image

When you were in the market for outrageously expensive and wildly impractical--but somehow viscerally "cool"--gadgets, where would you go? The Sharper Image, of course. Alas, I guess we've been so gadget-saturated as of late we've become rather blasé about them. Which is one reason why...
Sharper Image files for Chapter 11 bankruptcy

Retailer Sharper Image Corp has filed for Chapter 11 bankruptcy protection, citing declining sales, three straight years of losses and litigation involving its Ionic Breeze air purifiers.
She said the company has suffered from increased competition, narrowing margins, litigation, lower consumer and market confidence, tighter credit from suppliers, and poorly performing stores.
Sharper Image has seen its sales decline steadily since 2004, and has posted net losses in fiscal 2005, 2006, and 2007.

According to court papers, the electronics retailer also cited "negative publicity" from the litigation involving its Ionic Breeze air purifiers for its falling revenues.

In October, a federal court denied approval of a settlement of class-action suits related to the efficacy of the air purifiers. The product was sold to 3 million consumers, according to a previous filing.

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