Sharper Image Corp filed for Chapter 11 bankruptcy
The San Francisco-based, struggling electronics and specialty gifts retailer Sharper Image Corp. filed for Chapter 11 of the bankruptcy code on Tuesday, in the Bankruptcy Court for the District of Delaware.
Under Chapter 11, a company is given time to restructure its debts and fulfill obligations.
As per the company, it will continue to conduct business as usual while it develops a reorganization plan. In a separate filing, Chief Financial Officer Rebecca L. Roedell said the company plans to close 90 of its 184 stores as soon as possible after it sells their inventories.
Ron Conway was hired only last week, who runs a New York-based management consultancy firm, as its chief executive. The move came less than a year after hiring direct-marketing veteran Steven Lightman as CEO to help stem sinking sales.
The Sharper Image has long faced falling sales, made worse by an increasingly weak retail environment.
Sharper Image has lost a total of $136 million since January 2005 while its annual sales have plummeted from $776 million to under $400 million. In its most recent fiscal year, Sharper Image said its sales dropped 26 percent.
Shares dropped 44 cents, or 30.6 percent, to $1 during premarket electronic trading.
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