The Sharper Image 2206318 226168642 2008-07-17T03:30:22Z 72.213.156.38 {{Infobox Company | <!-- [[Wikipedia:WikiProject Companies]] template --> | company_name = The Sharper Image | company_logo = | company_type = [[Public company|Public]]<br/> | foundation = [[San Francisco, CA]] [[1977]] | location = San Francisco, California | key_people = Steven A. Lightman, [[President]] and [[Chief Executive Officer|CEO]]; | industry = [[Retail]] | revenue = {{decrease}} [[United States dollar|US$]]525.25 million (2007) | operating_income = {{decrease}} -[[United States dollar|US$]]98.52 million (2007) | net_income = {{decrease}} -[[United States dollar|US$]]59.89 million (2007) | num_employees = 2,500 | homepage = [http://thesharperimage.com www.sharperimage.com] }} The ''Sharper Image Corporation'' ({{nasdaq|SHRP}}), founded by [[Richard Thalheimer]], was a specialty retailer that operated throughout the United States. The Sharper Image had been in business since 1977 until its demise in 2008. The remnants of the company still has its headquarters in [[San Francisco, CA]], and once employed 2,500 people nationwide. The company sold through its once popular retail stores throughout the United States, a monthly catalog, and its website. The company also had its business-to-business sales teams for marketing its products for corporate incentive programs and wholesale to retailers. On [[February 19]], [[2008]], the company filed for [[Chapter 11, Title 11, United States Code|Chapter 11]] [[bankruptcy]], blaming low sales aggravated by a decline in [[consumer spending]] and negative publicity surrounding its [[Ionic Breeze]] [[air purifier]]s.<ref>{{cite web|url=http://www.usatoday.com/money/industries/retail/2008-02-20-sharper-image_N.htm?csp=34|accessdate=2008-02-20|title=Sharper Image files for Chapter 11 bankruptcy protection}}</ref> Sharper Image indicated that stores in economically impacted areas would be closed immediately. As of June 1, 2008, 96 of the company's 186 stores nationwide had completed the liquidation process and are now closed. The remaining stores and company assets have been acquired by Hilco Merchant Resources and Gordon Brothers Group. Liquidation sales in the remaining Sharper Image stores are currently underway with closure of all its retail stores estimated by early August of 2008. As of June 15, 2008, the company's web site no longer provides access to its catalog or online shopping. Instead, it provides an email address for further information, locations of the remaining stores, and the message, "Sorry to keep you in the dark. But, there's something big coming. Soon. Stay tuned."<ref>{{cite web|url=http://www.sharperimage.com|title=Sharper Image home page|accessdate=2008-06-15}}</ref> == History == The Sharper Image Corporation is the brainchild of [[Richard Thalheimer]]. The company started as a catalog business to sell [[jogging]] watches.<ref>{{cite web|url=http://sfgate.com/cgi-bin/article.cgi?f=/news/archive/2006/09/26/financial/f084807D10.DTL&type=business|title=Sharper Image founder Thalheimer is removed as CEO|last=Liedtke|first=Michael|accessdate=2007-08-09}}</ref> He started his advertising in running magazines, and within 2 years he had made his first million. This inspired him to start The Sharper Image.{{Fact|date=August 2007}} The year 2006 saw a shakeup in the [[board of directors]] of the company, including the removal of Richard Thalheimer as [[CEO]].<ref>{{cite web|url=http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2006/09/27/BUGGLLD5L71.DTL&type=tech|title=Sharper Image axes chief executive|last=Kim|first=Ryan|accessdate=2007-08-09}}</ref> Thalheimer was replaced by Chairman [[Jerry W. Levin]], under whom [[Sunbeam Products]]/American Household had filed for bankruptcy in 2001.<ref>{{cite web|url=http://www.ecolab.com/Investor/Governance/JerryLevin.html|title=Jerry W. Levin|accessdate=2007-11-07}}</ref> On April 9, 2007, Steven A. Lightman became the President and CEO.<ref>{{cite web|url=http://findarticles.com/p/articles/mi_m0EIN/is_2007_March_26/ai_n18770482|title=Sharper Image Appoints Steven A. Lightman President and Chief Executive Officer|accessdate=2007-08-09}}</ref> In May 2007, the company announced the hiring of Rebecca Roedell as Chief Financial Officer.<ref>{{cite web|url=http://www.rttnews.com/sp/todaystop.asp?date=05/11/2007&item=40&vid=0|title=Sharper Image Hires Rebecca Roedell As CFO; Roedell To Replace Interim CFO Daniel Nelson - Update|accessdate=2007-08-09}}</ref> Levin is also Chairman & CEO of JW Levin Partners LLC, a management and investment firm, since February 2005, and Vice Chairman of Clinton Group, a private diversified [[asset management]] company, since December 2007.[http://phx.corporate-ir.net/phoenix.zhtml?c=117565&p=irol-govBio&ID=126218] On February 8, 2008, 11 days before he announced the Sharper Image bankruptcy filing, JWL Partners Acquisition Corp., a [[SPAC]], or [[special purpose acquisition company]], submitted an [[IPO]] filing. The filing showed [[United States dollar|US]]$200 million proceeds targeted. The underwriting group is listed as [[Credit Suisse]] and [[Ladenburg Thalmann]] & Co. They have applied to list under the ticker “JWL.U” on the [[American Stock Exchange]]. The filing states that the blank check corporation intends to acquire or acquire control of one or more businesses.[http://www.marketwatch.com/news/story/spac-ipo-filing-jwl-partners/story.aspx?guid=%7BAE1648C8%2DE859%2D49CC%2DBB4D%2D94A4DF0F3AA5%7D][http://ipoportal.edgar-online.com/ipo/textSection.asp?cikid=769994&fnid=57638&IPO=1&sec=bd&coname=JWL+PARTNERS+ACQUISITION+CORP.] On April 10, 2008, Levin resigned as a member and Chairman of the Board of the company to pursue participating with other investors to acquire some or all of the company’s businesses or assets.[http://biz.yahoo.com/bw/080410/20080410005358.html?.v=1] But, as has been pointed out, "Levin hasn't made a lot of money for the investors of Sharper Image he's teamed up with so far, including hedge fund Ramius Capital, which helped bring him in as a director, and Clinton Group, which announced a large stake in December."[http://www.nypost.com/seven/04112008/business/sharper_image_eyed_by_ex_chair_106082.htm] Under Levin, the company's stock price had fallen from about $40 three years ago to about 23 cents (a "paltry" $3.6 million [[market capitalization]]) at the time of his departure, on the [[over-the-counter]] [[pink sheets]].[http://customwire.ap.org/dynamic/stories/S/SHARPER_IMAGE_CHAIRMAN?SITE=SLWIJ&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2008-04-10-09-10-53] In 2008, Thalheimer created his own [[e-commerce]] site http://richardsolo.com, which has no affiliation with The Sharper Image, and sells items that were typical of the Sharper Image when its focus was offbeat [[consumer electronics]]. ==Bankruptcy== On February 19, 2008, The Sharper Image stock reached an all-time low of 41 cents a share, followed by 29 cents a share on February 20, 2008. On February 25, 2008, The Sharper Image announced it had received notification that it would be delisted from the [[NASDAQ]] exchange. The company filed for protection with the U.S. [[bankruptcy court]] in [[Wilmington, Delaware]]. Sharper Image said it had $251.5 million of assets and $199 million of debts as of Jan. 31, according to the filing.<ref>{{cite news | url = http://www.bloomberg.com/apps/news?pid=20601087&sid=a4POsRTDai0g&refer=home | title = Sharper Image, Lillian Vernon File for Bankruptcy as Sales Slow | publisher = Bloomberg | first = Dawn | last = McCarty | coauthors = Cotten Timberlake | date = [[2008-02-20]] | accessdate = 2008-02-20}}</ref> Cash on hand totaled about $700,000.<ref>{{cite news | url = http://www.reuters.com/article/companyNewsAndPR/idUSN2034611020080220 | title = Sharper Image files for Chapter 11 bankruptcy | publisher = Reuters | date = [[2008-02-20]] | accessdate = 2008-02-20}}</ref> A joint venture led by units of private investment firms Hilco Consumer Capital Corp and Gordon Brothers Group have won a bankruptcy auction to acquire the assets of gadget retailer Sharper Image Corp SHRPQ.PK, a lawyer for Sharper Image said on Thursday.{{when?}} The firms will pay $49 million plus some contingent recovery for assets of the gadget retailer, according to Harvey Miller, an attorney with Weil, Gotshal & Manges, LLP, who is representing the company.[http://www.reuters.com/article/fundsFundsNews/idUSN2931519320080529] ==Retail stores== The company had 184 locations nationwide, which represented close to 60% of the total company revenue.{{Fact|date=August 2007}} In the last few years more and more retail revenue share had been taken over by internet shoppers and Sharper Image's [[Ebay]] operation.{{Fact|date=August 2007}} After filing Chapter 11, The Sharper Image liquidated 96 of its stores, leaving only 88 stores still functioning under the company's ownership as of May 28th, 2008. == Advertising and business == The Sharper Image's advertising budget was spent on the catalog for about the first 20 years of its existence.{{Fact|date=August 2007}} Once products like the [[Ionic Breeze]] were introduced, the company began using [[infomercial]]s for advertising. Most other products in the home air purifier market (including those made by [[Oreck]]) already used this medium, so The Sharper Image followed.{{Fact|date=August 2007}} This move boosted sales, but led to confusion between prices advertised on television and those marked in the retail stores.{{Fact|date=August 2007}} The company is known to receive special supplier contracts. For instance, its HW551 and HW552 product code massage chairs were specific to The Sharper Image, and Human Touch Interactive do not sell those specific chairs to any other retailer. Ever since the [[Robosapien]] was released on the market a few years ago, The Sharper Image had the exclusive rights to sell the "Signature Series", [[Robosapiens]] in chrome or blue-chrome, as opposed to the standard white models that are sold in other stores. ==Consumer Reports lawsuit== In 2002, ''[[Consumer Reports]]'' tested many fan-driven [[air purifier]]s alongside The Sharper Image's [[Ionic Breeze]] Quadra. The Sharper Image was not happy with the results, and sued Consumer Reports in order to get what they thought would be a more fair testing of the product.<ref name="si-lawsuit">{{cite web|url=http://www.consumerreports.org/cro/appliances/heating-cooling-and-air/air-cleaners/sharper-image-lawsuit-ends-505-air-purifier-ionic-air-cleaner/index.htm|title=Sharper Image pays $525,000 to end lawsuit against CU|accessdate=2007-08-09}}</ref> However, the suit was dismissed, primarily due to the court finding that the company "has not shown that the test [[protocol]] used by [[Consumers Union]] was scientifically, or otherwise, invalid," and had not "demonstrated a reasonable probability that any of the challenged statements were false." Furthermore, Sharper Image could not "come forward with any evidence from which a finding of [[malice]] could be made."<ref>{{cite web|url=http://www.quackwatch.org/14Legal/ionicbreeze.html|title=Court Dismisses Sharper Image Lawsuit against Consumers Union|last=Barrett|first=Stephen|accessdate=2008-03-05}}</ref> Two years later, Consumer Reports stated that the Quadra could be dangerous to consumers' health, because of the trace levels of [[ozone]] produced by the unit. <ref>{{cite web|url=http://www.msnbc.msn.com/id/7391185/|title=Consumer Reports calls air purifier ‘unhealthy’|accessdate=2007-08-09}}</ref> As a result, sales plummeted, and the stores took back units that were even years old for a cash refund. The Sharper Image's response was to work with the [[Engelhard Corporation]] and create an ozone [[catalyst]] that would reduce the purified air of excess ozone before it circulated throughout the room.<ref>{{cite web|url=http://findarticles.com/p/articles/mi_m0EIN/is_2005_July_25/ai_n14815944|title=Sharper Image Ionic Breeze Air Purifiers Are the First to Feature OzoneGuard|accessdate=2007-08-09}}</ref> == Trump Steaks == In early 2007, The Sharper Image entered into a partnership with [[Donald Trump]] to be the "exclusive" sellers of Trump Steaks.<ref name="trsteak">{{cite web|url=http://www.allbusiness.com/services/business-services/4340790-1.html|title=The Sharper Image: First to Offer Trump Steaks.|accessdate=2007-08-09}}</ref> Trump Steaks were actually steaks purchased from food industry supplier Buckhead Beef, re-packaged with the Trump brand, and re-priced higher.{{Fact|date=July 2008}} They were available in five different packages, ranging in price from $99 to $1,000. The packages were delivered via mail in [[dry ice]] packaging within two business days of the purchase. ==References== {{reflist}} *[http://finance.yahoo.com/q/pr?s=SHRP Profile from Finance on Yahoo!] *[http://phx.corporate-ir.net/phoenix.zhtml?c=101256&p=irol-irHome Investor Relations] *[http://www.forbes.com/facesinthenews/2008/04/10/levin-sharper-image-face-markets-cx_mlm_0410autofacescan02.html "Sharper Image Chairman Jumps Ship," [[Forbes]], 4/10/08] ==External links== *[http://www.sharperimage.com The Sharper Image website] [[Category:Companies established in 1977]] [[Category:Companies based in San Francisco, California]]