Damn You, SkyMall!
Well, the champagne bottles must be popping over at SkyMall today. The gadget vendor’s rival, The Sharper Image (SHRP), filed for Chapter 11 bankruptcy protection late yesterday and announced plans to shutter 90 of its 184 stores as soon as it’s able to sell off their inventories.
Seems increased competition and diminishing margins–not to mention that infamous air purifier class-action suit–have taken their toll on the company. Its sales fell 26% during its last fiscal year, which ended Jan. 31. And it’s amassed $199 million in debt. With just $251.5 million in assets, the company (which just last week replaced its CEO with a crisis-management expert) is in dire straits. Said CFO Rebecca Roedell, “Sharper Image is in a severe liquidity crisis.”