Sharper Image has filed for bankruptcy protection. I told you it would happen … I have been saying it for nearly 1 full year now. With steeply declining profits and 3 CEO’s over the last 2 years, was there really any doubt?
Sharper Image is now saying that it is all a judge’s fault for rejecting their settlement over their ionic air purifiers for $22 million. An interesting quote from Bloomberg regarding the Sharper Image bankruptcy situation:
“Once you get to this situation it’s like a death spiral,” said Joan Storms, a Los Angeles-based analyst with Wedbush Morgan Securities. “Your sales are bad, your equity is getting weaker, the vendors are afraid to ship to you.”
Last year alone sales declined 26%. Sales have been declining for 2 full years now for Sharper Image, whose inability to launch interesting products drove them under. Sharper Image will now be cutting 90 of 184 stores. Expect them to go completely under in the very near future.