Sharper Image

Last updated
Sharper Image
IndustryConsumer Electronics and Lifestyle Products
Founded1977;46 years ago (1977)
San Francisco, California, U.S.
FounderRichard Thalheimer
Defunct2008;15 years ago (2008)
(as retail stores)
Fate Chapter 11 Bankruptcy
HeadquartersIrvine, CA, USA
Parent ThreeSixty Group;
Website www.sharperimage.com

Sharper Image is an American brand that offers consumers home electronics, air purifiers, gifts, and other high-tech lifestyle products through its website, catalog, and third-party retailers. The brand is owned by ThreeSixty Group, [1] with the U.S. catalog and website owned and operated by Michigan-based Camelot Venture Group. [2]

Contents

The brand has been in operation since its relaunch in 2010. The earlier consumer products retailer by that name was founded by Richard Thalheimer and was in business from 1977 until its closing in 2008. The company sold merchandise through dozens of retail stores throughout the United States, a monthly catalog, and its website, along with business-to-business sales teams that marketed products for corporate incentive programs and wholesale to retailers.

In 2016, ThreeSixty Group, Inc. acquired Sharper Image from Iconix Brand Group, Inc. [3]

History

The Sharper Image was founded by Richard Thalheimer. The company started in 1977 as a catalog business to sell jogging watches. [4] Later, through their catalog, [5] The Sharper Image expanded its product assortment to include high-end futuristic gadgets, electronics, massage chairs, and air purifiers. The Sharper Image eventually expanded to 187 retail stores in 38 states. [6]

Bankruptcy

Litigation involving its Ionic Breeze air purifiers sullied the brand's image. [7] The company sued Consumer Reports for Fail ratings on ionic purifiers. In turn, the company was sued by customers for ineffective air purification.

In 2006 there was a change in the board of directors of the company, and the removal of Thalheimer as CEO. [8] Thalheimer was replaced by Chairman Jerry W. Levin. [9] Not long after, on April 9, 2007, Steven A. Lightman became the president and CEO. [10]

The Sharper Image stock price reached a record low of 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 bankruptcy protection with the U.S. Bankruptcy Court in Wilmington, Delaware after four years of sales losses and three straight years of losses. [11] Sharper Image said it had $251.5 million of assets and $199 million of debts as of January 31, 2008, according to the filing. [12] Cash on hand totaled about $700,000. [13] All of its retail stores were closed by the end of 2008. [14]

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. But, as was pointed out, "Levin hasn't made a lot of money for the investors of Sharper Image he's teamed up with so far, including Under Levin, the company's stock price had fallen from about $40 three years earlier to about 23 cents (a $3.6 million market capitalization) at the time of his departure. [15] Levin joined a group making a bid for the company; the group included hedge fund Ramius Capital, which was involved in Levin getting onto the company's board of directors, and Clinton Group, which announced a large stake in the company in December 2017. [16]

Post-bankruptcy

On May 29, 2008, a joint venture led by units of private investment firms Hilco Consumer Capital, Infinity Lifestyle Brands, Gordon Brothers Group, and Bluestar Alliance won a bankruptcy auction to acquire the assets of The Sharper Image, paying $49 million (~$65.7 million in 2022) plus some contingent recovery for the company's assets. [17] The Sharper Image name was then licensed and used to sell products through major third-party retailers and the branded website. New products were created through partnerships with other businesses. [14] [18] [19]

In 2011, Iconix Brand Group bought the Sharper Image brand [20] and took control of all licensing relationships, while Camelot Venture Group continued to operate the catalog and website. In June 2014, Camelot Venture Group acquired the rights to the US direct-to-consumer division of the brand (catalog and e-commerce) from Iconix Brand Group.

Relaunch

In December 2016, Irvine (California)-based ThreeSixty Group, owners of brands such as FAO Schwarz and Vornado Air, purchased all remaining rights (including global manufacturing, distribution, and licensing rights) from Iconix Brand Group for US$100 million (~$120 million in 2022). [21] In 2019, ThreeSixty Group relaunched Sharper Image with new logos, styling, slogans (including Tomorrow's Tomorrow), and a refreshed product assortment.

Consumer Reports lawsuit

In 2002, Consumer Reports tested many fan-driven air purifiers 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 fairer testing of the product. [22] However, the suit was dismissed, primarily owing to the court's 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." [23]

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. [24] As a result sales plummeted, and Sharper Image stores took back all units for a cash refund. The Sharper Image's response was to work with the Engelhard Corporation and create an ozone catalyst that reduced the amount of excess ozone in the purified air before it circulated throughout the room. [25]

Related Research Articles

<span class="mw-page-title-main">Sears</span> Department store chain in the United States

Sears, Roebuck and Co., commonly known as Sears, is an American chain of department stores founded in 1892 by Richard Warren Sears and Alvah Curtis Roebuck and reincorporated in 1906 by Richard Sears and Julius Rosenwald, with what began as a mail ordering catalog company migrating to opening retail locations in 1925, the first in Chicago. In 2005, the company was bought by the management of the American big box discount chain Kmart, which upon completion of the merger, formed Sears Holdings. Through the 1980s, Sears was the largest retailer in the United States. In 2018, it was the 31st-largest. After several years of declining sales, Sears's parent company filed for Chapter 11 bankruptcy on October 15, 2018. It announced on January 16, 2019, that it had won its bankruptcy auction, and that a reduced number of 425 stores would remain open, including 223 Sears stores.

<span class="mw-page-title-main">Air ioniser</span> ION is mostly used on air conditioning products. Ioniser is another word for air purifier

An air ioniser is a device that uses high voltage to ionise air molecules. Negative ions, or anions, are particles with one or more extra electrons, conferring a net negative charge to the particle. Cations are positive ions missing one or more electrons, resulting in a net positive charge. Some commercial air purifiers are designed to generate negative ions. Another type of air ioniser is the electrostatic discharge (ESD) ioniser used to neutralise static charge.

<span class="mw-page-title-main">Montgomery Ward</span> Retailer in the United States

Montgomery Ward is the name of two successive U.S. retail corporations. The original Montgomery Ward & Co. was a world-pioneering mail-order business and later a leading department store chain that operated between 1872 and 2001. The current Montgomery Ward Inc. is a national online shopping and mail-order catalog retailer that started several years after the original Montgomery Ward shut down.

Harry and David, LLC is an American-based premium food and gift producer and retailer. The company sells its products through direct mail, online, corporate gifting, and in their flagship location in Medford, Oregon, and operates the brands Harry & David, Wolferman's, and Vital Choice. Harry & David was founded in 1910 by Samuel Rosenberg as Bear Creek Orchards in Medford, Oregon, as a premium fruit company. As of 2014, it is owned by 1-800-Flowers.com.

<span class="mw-page-title-main">Circuit City</span> Consumer electronics retailer

Circuit City Corporation, Inc., formerly Circuit City Stores, Inc., was an American consumer electronics retail company, which was founded in 1949 by Samuel Wurtzel as the Wards Company, operated stores across the United States, and pioneered the electronics superstore format in the 1970s. After multiple purchases and a successful run on the NYSE, it changed its name to Circuit City Stores Inc.

The Source (Bell) Electronics Inc., doing business as The Source, is a Canadian consumer electronics and cell phone retail chain. The chain goes back over 40 years in Canada, initially as Radio Shack and later as The Source by Circuit City. The Source is now owned by BCE Inc., which purchased the assets of InterTAN from its parent, American retailer Circuit City, in 2009. The Source is a unit of 4458729 Canada Inc. and is based in Barrie, Ontario.

<span class="mw-page-title-main">PVH Corp.</span> American clothing company

PVH Corp., formerly known as the Phillips-Van Heusen Corporation, is an American clothing company which owns brands such as Tommy Hilfiger, Calvin Klein, Warner's, Olga and True & Co. The company also licenses brands such as Kenneth Cole New York and Michael Kors. PVH is partly named after Dutch immigrant John Manning van Heusen, who in 1910 invented a new process that fused cloth on a curve.

Forever 21 is a multinational fast fashion retailer headquartered in Los Angeles, California, United States. Originally founded as the store Fashion 21 in Highland Park, Los Angeles in 1984, it is currently operated by Authentic Brands Group and Simon Property Group, with about 540 outlets.

<span class="mw-page-title-main">Brookstone</span> Chain of retail stores

Brookstone is a chain of retail stores in the United States and China. It was founded as a mail-order business in 1965, when it started selling items, such as dental clamps and other specialty tools. Its first physical location opened in 1973 in Peterborough, New Hampshire. The company's headquarters are currently located in Merrimack, New Hampshire.

<span class="mw-page-title-main">Spiegel (US retailer)</span> Former direct marketing retailer

Spiegel was an American direct marketing retailer founded in 1865 by Joseph Spiegel. Spiegel published a catalog, like its competitors Sears and Montgomery Ward, which advertised various brands of apparel, accessories, and footwear, as well as housewares, toys, tools, firearms, and electronics. Their company brands included Newport News, Shape FX, and Old Kraftsman, among others. They also operated brick-and-mortar stores.

<span class="mw-page-title-main">Richard Thalheimer</span> American entrepreneur and investor

Richard Thalheimer is an American entrepreneur and investor. He is the founder and former CEO of the US-based consumer brand, The Sharper Image. He established The Sharper Image in 1977, after taking an interest in watches. The early watch designs were inspired by a $69 watch that he owned and advertised his watch range in Runner's World magazine. The success of the watch advertisement led to the inaugural distribution of The Sharper Image catalog in 1979. Thalheimer took his company Public company in 1987 on the Nasdaq exchange.

<span class="mw-page-title-main">Ritz Camera & Image</span> American photographic retail and photofinishing specialty store

Ritz Camera & Image is a photographic retail and photofinishing specialty store, headquartered in Edison, New Jersey. The company owns and used to operate a chain throughout the United States under the names Wolf Camera, Inkley’s and Ritz Camera. In 2012, Ritz Camera was acquired by C&A Marketing.

Iconix Brand Group is an American brand management company that licenses brands to retailers and manufacturers, primarily in the apparel, footwear and apparel accessory industries.

Wilsons Leather is a U.S. leather brand, selling products such as leather jackets, belts, shoes, handbags, and gloves. At its peak in 2002, the Minneapolis-based retailer had 763 stores in 46 states and Canada. The company stores used to sell product assortments from brands such as DKNY, Michael Kors, Guess, and Cole Haan.

Disney Consumer Products, Inc. is the retailing and licensing subsidiary of the Disney Experiences segment of The Walt Disney Company. Previously, Consumer Products was a segment of Disney until 2016, then a unit of Disney Consumer Products and Interactive Media (2016–2018).

<span class="mw-page-title-main">London Fog (company)</span> Manufacturer of coats and other clothes

London Fog is an American manufacturer of coats and other apparel. The company was founded in 1922 as the Londontown clothing company by Israel Myers.

Jerry W. Levin is an American businessman.

<span class="mw-page-title-main">Scene7</span>

Scene7 is an American on-demand rich media software company that provides document hosting and interactive publishing services such as online catalogs, targeted email, video, and image management. Retailers use the company's services to showcase products on their websites and to allow customers to interact with the products. Scene7's technology allows users to manipulate product images by zooming in and rotating products, simulating the inspection of merchandise in retail stores.

Golfsmith International Holdings Inc. was an American golf specialty retailer based in Austin, Texas. Each store, along with golfsmith.com, housed a wide selection of golf clubs, shoes, apparel, gadgets and gear from all the major brands as well as proprietary offerings. They also offered custom club fitting, lessons and services for golfers.

<span class="mw-page-title-main">Global Brands Group</span> Chinese apparel, footwear, brand management company

Global Brands Group Holding Limited is a bankrupt holding company that has its own brand of apparel and footwear, as well as being a brand management company. It designs, develops, markets and sells products under a diverse array of owned and licensed brands in a wide range of product categories. In June 2021, despite a series of asset sales, the company's liabilities still exceeded its asset value. Trading in the shares of the financially stressed entity was halted by the Hong Kong Stock Exchange due to its inability to file annual results. In 2022 Creative Artists Agency took full ownership of the joint venture, CAA-GBG Global Brand Management Group (CAA-GBG), a partnership that was launched in 2016. CAA-GBG is a Brand Management Company. A Brand Management Company is a business that uses techniques to increase the perceived value of a product line or brand over time. The company manages brands including celebrity brands such as David Beckham and Drew Barrymore.

References

  1. "Manufacturer Buys Sharper Image". ocbj.com. 2017-01-03. Retrieved 2017-01-03.
  2. "The Sharper Image - Official Site: Unique, Innovative, and Fun Gifts for your home or office". www.sharperimage.com. Retrieved 2019-04-23.
  3. "ThreeSixty Group Announces Acquisition of The Sharper Image". www.businesswire.com. 2016-12-30. Retrieved 2023-12-09.
  4. Liedtke, Michael. "Sharper Image founder Thalheimer is removed as CEO". The San Francisco Chronicle. Archived from the original on 2008-12-26. Retrieved 2007-08-09.
  5. "With Sharper Image's Demise, A Way Of Life Gone". NPR.org. Retrieved 2017-04-25.
  6. "Sharper Image Corp.: Private Company Information - Bloomberg". www.bloomberg.com. Retrieved 2017-04-25.
  7. "Sharper Image files for Chapter 11 bankruptcy". Reuters. 20 February 2008.
  8. Kim, Ryan (2006-09-27). "Sharper Image axes chief executive". The San Francisco Chronicle. Retrieved 2007-08-09.
  9. "Jerry W. Levin". Archived from the original on 2007-11-15. Retrieved 2007-11-07.
  10. "Sharper Image Appoints Steven A. Lightman President and Chief Executive Officer". Business Wire. 2007-03-26. Retrieved 2007-08-09.
  11. "Sharper Image files for Chapter 11 bankruptcy". Reuters. 20 February 2008.
  12. McCarty, Dawn; Timberlake (2008-02-20). "Sharper Image, Lillian Vernon File for Bankruptcy as Sales Slow". Bloomberg. Retrieved 2008-02-20.
  13. "Sharper Image files for Chapter 11 bankruptcy". Reuters. 2008-02-20. Retrieved 2008-02-20.
  14. 1 2 Taub, Eric (2009-01-18). "The Sharper Image Brand Outlives the Stores". The New York Times. ISSN   0362-4331 . Retrieved 2017-04-25.
  15. AP (10 April 2008). "Sharper Image chairman resigns, wants to buy bankrupt retailer". The Mercury News . Archived from the original on 21 May 2020.
  16. WHITEHOUSE, KAJA (April 11, 2008). "SHARPER IMAGE EYED BY EX-CHAIR". The New York Post. Retrieved 2008-09-01.
  17. Chasan, Emily (2008-05-29). "Investment firms win Sharper Image in bankruptcy". Reuters. Retrieved 2008-07-21.
  18. Fredrix, Emily (2009-07-01). "Meltdown 101: Shuttered stores' sites still sell". The Guardian. London. Retrieved 2009-11-10.
  19. Kavilanz, Parija B. (2009-04-26). "Brands of defunct retailers making a comeback — Apr. 26, 2009". Money.cnn.com. Retrieved 2009-10-20.
  20. "Iconix acquires The Sharper Image brand".
  21. "The Sharper Image". www.facebook.com. Retrieved 2017-03-09.
  22. "Sharper Image pays $525,000 to end lawsuit against CU". Archived from the original on August 6, 2007. Retrieved 2007-08-09.
  23. Barrett, Stephen (19 April 2005). "Court Dismisses Sharper Image Lawsuit against Consumers Union" . Retrieved 2008-03-05.
  24. "Consumer Reports calls air purifier 'unhealthy'" . Retrieved 2007-08-09.
  25. "Sharper Image Ionic Breeze Air Purifiers Are the First to Feature OzoneGuard". Business Wire. 2005-07-25. Archived from the original on February 17, 2006. Retrieved 2007-08-09.