"Sharper Image" is bankrupt

[Boyd Ostroff]

Their troubles began with some questionable claims about the "Ionic Breeze"...

http://www.bloomberg.com/apps/news?p...PK4&refer=news

Feb. 20 (Bloomberg) -- Sharper Image Corp., the seller of $300 electric shavers and $1,999 massage chairs, filed for bankruptcy protection after losing money in 11 of the last 13 quarters.

The 31-year-old retailer will shed 90 stores while it deals with a ``severe liquidity crisis,'' Chief Financial Officer Rebecca Roedell said in papers filed last night in U.S. Bankruptcy Court in Wilmington, Delaware.

[John Hudson]

I've never understood filing a BK

It's like calling a timeout when you're losing and then walking off the court.

: /

Always a fun store to go into, but who bought this stuff?

[Brian Child]

Originally Posted by John Hudson

I've never understood filing a BK

It's like calling a timeout when you're losing and then walking off the court.

: /

Always a fun store to go into, but who bought this stuff?

The operative word here is bankruptcy protection pursuant to Chapter 11. This enables a debtor to attempt to reorganize and put proposal to creditors. Although not intended as such, Chapter 11 is also sometimes used as a liquidation procedure to enable a more orderly liquidation os assets at a higher value than what otherwsie might be obtained.

In this case (at least according to the news quote) SI wants to shed the less profitable locations and rejuvinate cash flow by keeping the profitable locations. If successful, Sharper Image will not disappear - just be leaner and meaner (and, presumably, more profitable). If the plan of arrangement is unsuccessful, it will likely disappear.

[Boyd Ostroff]

Here are a few updates...

http://biz.yahoo.com/ap/080305/sharp...ptcy.html?.v=1

http://biz.yahoo.com/bw/080307/20080307005785.html?.v=1