Recently with the rising fuel costs and sluggish retail sales, Brick & Mortar stores are shutting down. CompUSA has already shut down all of their stores, Linens N Things filed bankruptcy, and now Sharper Image is shutting down their stores.
I tell you this early because if you want that massage chair that you sit in all day at Sharper Image, now is the time to get it.
From CNBC:
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AP
Sharper Image
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Both Sharper Image
[SHRP 0.06 — UNCH (0%)
], known for its high-tech novelty gadgets, and Lillian Vernon, which sells low-cost gifts and gadgets through its catalog and Web site, have long been plagued with falling sales.
But an increasingly weak retail environment proved to be the breaking point for the retailers. Consumers have cut back on discretionary spending as credit and housing markets remain weak and high food and gas prices persist.
In an affidavit filed with the U.S. Bankruptcy Court for the District of Delaware on Tuesday, Sharper Image Chief Financial Officer Rebecca L. Roedell said the company has experienced declining sales since 2004 and recorded net losses in fiscal 2005 to 2007, continuing into 2008.
She said the company is in a “severe liquidity crisis,” hurt by tougher competition, deteriorating gross margins, pending litigation and the volatile credit and financing markets, among other factors.
A rejected settlement offer related to a class-action lawsuit involving its air purifiers led to a drop in the company’s stock price, loss in market confidence and eventually contracted credit terms from vendors and suppliers, Roedell said.
San Francisco-based Sharper Image plans to close 90 of its 184 stores as soon as possible after it sells their inventories. It plans to continue to conduct business as usual while it develops a reorganization plan.