The Sharper Image
Encyclopedia
The Sharper Image is an American
product brand
, formerly associated with a defunct retail company, now licensed for use on consumer electronics
and gift
products.
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 which marketed products for corporate incentive programs and wholesale to retailers.
On February 19, 2008, the company filed for Chapter 11
bankruptcy
, blaming low sales aggravated by a decline in consumer spending
and negative publicity surrounding its Ionic Breeze air purifier
s. At that time the company had 2,500 employees. By the end of 2008 all of the retail stores had closed and the company assets were acquired by Hilco Consumer Capital, Infinity Lifestyle Brands, Gordon Brothers Group
and Bluestar Alliance, after which the brand name was licensed for use on products sold through third party retailers such as Best Buy
and Bed Bath & Beyond
or through the branded website. New products are created through partnerships with other businesses. Plans to open a new series of retail stores were announced in late 2009.
. The company started as a catalog business to sell jogging
watches. He started his advertising in running magazines, and within 2 years he had made his first million. This inspired him to start The Sharper Image.
The year 2006 saw a shakeup in the board of directors
of the company, including the removal of Thalheimer as CEO.
Thalheimer was replaced by Chairman Jerry W. Levin
, who was formerly Chairman and CEO of American Household/Sunbeam, Coleman, and Revlon, and under whom Sunbeam Products
/American Household had filed for bankruptcy in 2001.
On April 9, 2007, Steven A. Lightman became the President and CEO. In May 2007, the company announced the hiring of Rebecca Roedell as Chief Financial Officer.
Levin is also Chairman & CEO of JW Levin Partners LLC, a management and investment firm, since February 2005. And as of October 2009, is Chairman and Interim CEO of Wilton Brands, Inc. Levin was Vice Chairman of Clinton Group, a private diversified asset management company, between December 2007 and October 2008. On February 8, 2008, 11 days before he announced the Sharper Image bankruptcy filing, JWL Partners Acquisition Corp., a SPAC, or special purpose acquisition company
, submitted an IPO filing. The filing showed US
$200 million proceeds targeted. The underwriting group was listed as Credit Suisse
and Ladenburg Thalmann
& Co. They applied to list under the ticker “JWL.U” on the American Stock Exchange
. The filing stated that the blank check corporation intends to acquire or acquire control of one or more businesses. The filing was eventually withdrawn due to the economic market conditions.
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 hedge fund
Ramius Capital, which helped bring him in as a director, and Clinton Group, which announced a large stake in December." Under Levin, the company's stock price had fallen from about $40 three years ago to about 23 cents (a "paltry" $3.6 million market capitalization
) at the time of his departure, on the over-the-counter pink sheets
. His group's bid did not succeed.
In May 2007, Thalheimer created his own e-commerce site http://richardsolo.com, which has no affiliation with The Sharper Image, and sells items that were typical of the Sharper Image when its focus was offbeat consumer electronics
.
exchange. The company filed for protection with the U.S. bankruptcy court in Wilmington, Delaware
. Sharper Image said it had $251.5 million of assets and $199 million of debts as of January 31, 2008, according to the filing. Cash on hand totaled about $700,000.
On May 29, 2008, a joint venture led by units of private investment firms Hilco Consumer Capital Corp. Infinity Lifestyle Brands and Gordon Brothers Group
won a bankruptcy auction to acquire the assets of The Sharper Image, paying $49 million plus some contingent recovery for the company's assets.
, Bed Bath & Beyond
, OfficeMax
, and Big 5 Sporting Goods
. In August 2009, Camelot Venture Group began running the company website. They also announced plans to open new retail stores.
s for advertising. Most other products in the home air purifier market (including those made by Oreck
) already used this medium, so The Sharper Image followed. This move boosted sales, but led to confusion between prices advertised on television and those marked in the retail stores.
The company was known to receive special supplier contracts. For instance, its HW551 and HW552 product code massage chairs were specific to The Sharper Image, and Human Touch Interactive does not sell those specific chairs to any other retailer. Ever since the Robosapien
was released on the market a few years ago, The Sharper Image had the exclusive rights to sell the "Signature Series" Robosapiens in chrome or blue-chrome, as opposed to the standard white models that are sold in other stores.
tested many fan-driven air purifier
s 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 more fair testing of the product. However, the suit was dismissed, primarily due to the court 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."
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. As a result, sales plummeted, and the stores took back units, even ones that were years old, for a cash refund. The Sharper Image's response was to work with the Engelhard Corporation and create an ozone catalyst that would reduce the purified air of excess ozone before it circulated throughout the room.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
product brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
, formerly associated with a defunct retail company, now licensed for use on consumer electronics
Consumer electronics
Consumer electronics are electronic equipment intended for everyday use, most often in entertainment, communications and office productivity. Radio broadcasting in the early 20th century brought the first major consumer product, the broadcast receiver...
and gift
Gift
A gift or a present is the transfer of something without the expectation of receiving something in return. Although gift-giving might involve an expectation of reciprocity, a gift is meant to be free. In many human societies, the act of mutually exchanging money, goods, etc. may contribute to...
products.
The earlier consumer products retailer by that name was founded by Richard Thalheimer
Richard Thalheimer
Richard Thalheimer is founder, and former CEO and chairman, of The Sharper Image Corporation.-Early life:Thalheimer's family settled in Arkansas before the American Civil War and started a livery business. Thalheimer was raised in Little Rock. After graduating from Hall High School in Little...
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 which marketed products for corporate incentive programs and wholesale to retailers.
On February 19, 2008, the company filed for Chapter 11
Chapter 11, Title 11, United States Code
Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most...
bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
, blaming low sales aggravated by a decline in consumer spending
Consumer spending
Consumer spending or consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level...
and negative publicity surrounding its Ionic Breeze air purifier
Air purifier
An air purifier is a device which removes contaminants from the air. These devices are commonly marketed as being beneficial to allergy sufferers and asthmatics, and at reducing or eliminating second-hand tobacco smoke...
s. At that time the company had 2,500 employees. By the end of 2008 all of the retail stores had closed and the company assets were acquired by Hilco Consumer Capital, Infinity Lifestyle Brands, Gordon Brothers Group
Gordon Brothers Group
Gordon Brothers Group, headquartered in Boston, Massachusetts, is a liquidation firm that was founded in 1903 by Jacob Bernard, Louis and Joseph Gordon....
and Bluestar Alliance, after which the brand name was licensed for use on products sold through third party retailers such as Best Buy
Best Buy
Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates...
and Bed Bath & Beyond
Bed Bath & Beyond
Bed Bath & Beyond Inc. was formed in 1971 and today operates a chain of domestic merchandise retail stores across United States, Puerto Rico and Canada. They feature mostly medium-ranged, but also a limited selection of high quality, domestic merchandise: items for the bedroom, bathroom, kitchen,...
or through the branded website. New products are created through partnerships with other businesses. Plans to open a new series of retail stores were announced in late 2009.
History
The Sharper Image Corporation was the brainchild of Richard ThalheimerRichard Thalheimer
Richard Thalheimer is founder, and former CEO and chairman, of The Sharper Image Corporation.-Early life:Thalheimer's family settled in Arkansas before the American Civil War and started a livery business. Thalheimer was raised in Little Rock. After graduating from Hall High School in Little...
. The company started as a catalog business to sell jogging
Jogging
Jogging is a form of trotting or running at a slow or leisurely pace. The main intention is to increase fitness with less stress on the body than from faster running.-Definition:...
watches. He started his advertising in running magazines, and within 2 years he had made his first million. This inspired him to start The Sharper Image.
The year 2006 saw a shakeup in the board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
of the company, including the removal of Thalheimer as CEO.
Thalheimer was replaced by Chairman Jerry W. Levin
Jerry W. Levin
Jerry W. Levin, born in 1944, is an American businessman.Levin is an experienced CEO, turnaround expert and mergers & acquisitions specialist. He has been growing the sales and profits of branded consumer products companies for the past 30 years via internal product development programs,...
, who was formerly Chairman and CEO of American Household/Sunbeam, Coleman, and Revlon, and under whom Sunbeam Products
Sunbeam Products
Sunbeam Products is an American brand that has produced electric home appliances since 1910. Their products have included the Mixmaster mixer, the Sunbeam CG waffle iron, Coffeemaster and the fully automatic T20 toaster. Sunbeam is owned by Jarden Consumer Solutions after Jarden's acquisition in...
/American Household had filed for bankruptcy in 2001.
On April 9, 2007, Steven A. Lightman became the President and CEO. In May 2007, the company announced the hiring of Rebecca Roedell as Chief Financial Officer.
Levin is also Chairman & CEO of JW Levin Partners LLC, a management and investment firm, since February 2005. And as of October 2009, is Chairman and Interim CEO of Wilton Brands, Inc. Levin was Vice Chairman of Clinton Group, a private diversified asset management company, between December 2007 and October 2008. On February 8, 2008, 11 days before he announced the Sharper Image bankruptcy filing, JWL Partners Acquisition Corp., a SPAC, or special purpose acquisition company
Special purpose acquisition company
A special-purpose acquisition company is a collective investment scheme that allows public stock market investors to invest in private equity type transactions, particularly leveraged buyouts...
, submitted an IPO filing. The filing showed US
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
$200 million proceeds targeted. The underwriting group was listed as Credit Suisse
Credit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
and Ladenburg Thalmann
Ladenburg Thalmann
Ladenburg Thalmann Financial Services, a NYSE Amex-listed company , is a diversified financial services company with two primary business lines: independent brokerage and advisory, and investment banking and capital markets...
& Co. They applied to list under the ticker “JWL.U” on the American Stock Exchange
American Stock Exchange
NYSE Amex Equities, formerly known as the American Stock Exchange is an American stock exchange situated in New York. AMEX was a mutual organization, owned by its members. Until 1953, it was known as the New York Curb Exchange. On January 17, 2008, NYSE Euronext announced it would acquire the...
. The filing stated that the blank check corporation intends to acquire or acquire control of one or more businesses. The filing was eventually withdrawn due to the economic market conditions.
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 hedge fund
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
Ramius Capital, which helped bring him in as a director, and Clinton Group, which announced a large stake in December." Under Levin, the company's stock price had fallen from about $40 three years ago to about 23 cents (a "paltry" $3.6 million market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
) at the time of his departure, on the over-the-counter pink sheets
Pink Sheets
OTC Markets Group, Inc., informally known as "Pink Sheets", is a private company that provides services to the U.S. over-the-counter securities market including electronic quotations, trading, messaging, and information platforms. According to the U.S. Securities and Exchange Commission, OTC...
. His group's bid did not succeed.
In May 2007, Thalheimer created his own e-commerce site http://richardsolo.com, which has no affiliation with The Sharper Image, and sells items that were typical of the Sharper Image when its focus was offbeat consumer electronics
Consumer electronics
Consumer electronics are electronic equipment intended for everyday use, most often in entertainment, communications and office productivity. Radio broadcasting in the early 20th century brought the first major consumer product, the broadcast receiver...
.
Bankruptcy
On February 19, 2008, The Sharper Image stock reached an all-time low of 41 cents a share, followed by 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 NASDAQNASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
exchange. The company filed for protection with the U.S. bankruptcy court in Wilmington, Delaware
Wilmington, Delaware
Wilmington is the largest city in the state of Delaware, United States, and is located at the confluence of the Christina River and Brandywine Creek, near where the Christina flows into the Delaware River. It is the county seat of New Castle County and one of the major cities in the Delaware Valley...
. Sharper Image said it had $251.5 million of assets and $199 million of debts as of January 31, 2008, according to the filing. Cash on hand totaled about $700,000.
On May 29, 2008, a joint venture led by units of private investment firms Hilco Consumer Capital Corp. Infinity Lifestyle Brands and Gordon Brothers Group
Gordon Brothers Group
Gordon Brothers Group, headquartered in Boston, Massachusetts, is a liquidation firm that was founded in 1903 by Jacob Bernard, Louis and Joseph Gordon....
won a bankruptcy auction to acquire the assets of The Sharper Image, paying $49 million plus some contingent recovery for the company's assets.
Post-bankruptcy
The Sharper Image name is now licensed as a product brand, by a joint venture between Hilco Consumer Capital, Infinity Lifestyle Brands, Gordon Brothers and Bluestar Alliance. The brand is used to sell products through third party retailers, including Best BuyBest Buy
Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates...
, Bed Bath & Beyond
Bed Bath & Beyond
Bed Bath & Beyond Inc. was formed in 1971 and today operates a chain of domestic merchandise retail stores across United States, Puerto Rico and Canada. They feature mostly medium-ranged, but also a limited selection of high quality, domestic merchandise: items for the bedroom, bathroom, kitchen,...
, OfficeMax
OfficeMax
OfficeMax , is an American office supplies retailer that was founded in 1988 and is headquartered in Naperville, Illinois.-History:On April 1, 1988, OfficeMax was founded in Cleveland, Ohio, by Bob Hurwitz and Michael Feuer. Hurwitz served as executive chairman and chief executive officer and Feuer...
, and Big 5 Sporting Goods
Big 5 Sporting Goods
Big 5 Sporting Goods is a sporting goods retailer headquartered in El Segundo, California with 388 stores in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oklahoma, Oregon, Texas, Utah, Washington and Wyoming. Steven G. Miller is the Chairman, President, and CEO.The Big 5 name is...
. In August 2009, Camelot Venture Group began running the company website. They also announced plans to open new retail stores.
Advertising and business
The Sharper Image's advertising budget was primarily directed to its monthly catalog for about the first 20 years of its existence. Once products like the Ionic Breeze were introduced, the company began using infomercialInfomercial
Infomercials are direct response television commercials which generally include a phone number or website. There are long-form infomercials, which are typically between 15 and 30 minutes in length, and short-form infomercials, which are typically 30 seconds to 120 seconds in length. Infomercials...
s for advertising. Most other products in the home air purifier market (including those made by Oreck
David Oreck
David Oreck is an American salesman, entrepreneur, and businessman. He is the founder of the Oreck Corporation, makers of vacuum cleaners and air purifiers, and is known through his appearances as a spokesman in Oreck television commercials and infomercials.-Early life:David Oreck was born close...
) already used this medium, so The Sharper Image followed. This move boosted sales, but led to confusion between prices advertised on television and those marked in the retail stores.
The company was known to receive special supplier contracts. For instance, its HW551 and HW552 product code massage chairs were specific to The Sharper Image, and Human Touch Interactive does not sell those specific chairs to any other retailer. Ever since the Robosapien
RoboSapien
RoboSapien is a toy-like biomorphic robot designed by Mark Tilden and produced by WowWee toys. The RoboSapien is preprogrammed with moves, and also can be controlled by an infrared remote control included with the toy, or by either a personal computer equipped with an infrared transmitter, and an...
was released on the market a few years ago, The Sharper Image had the exclusive rights to sell the "Signature Series" Robosapiens in chrome or blue-chrome, as opposed to the standard white models that are sold in other stores.
Consumer Reports lawsuit
In 2002, Consumer ReportsConsumer Reports
Consumer Reports is an American magazine published monthly by Consumers Union since 1936. It publishes reviews and comparisons of consumer products and services based on reporting and results from its in-house testing laboratory. It also publishes cleaning and general buying guides...
tested many fan-driven air purifier
Air purifier
An air purifier is a device which removes contaminants from the air. These devices are commonly marketed as being beneficial to allergy sufferers and asthmatics, and at reducing or eliminating second-hand tobacco smoke...
s 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 more fair testing of the product. However, the suit was dismissed, primarily due to the court finding that the company "has not shown that the test protocol
Methodology
Methodology is generally a guideline for solving a problem, with specificcomponents such as phases, tasks, methods, techniques and tools . It can be defined also as follows:...
used by Consumers Union
Consumers Union
Consumers Union is a non-profit organization best known as the publisher of Consumer Reports, based in the United States. Its mission is to "test products, inform the public, and protect consumers."...
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
Malice (legal term)
Malice is a legal term referring to a party's intention to do injury to another party. Malice is either expressed or implied. Malice is expressed when there is manifested a deliberate intention unlawfully to take away the life of a human being...
could be made."
Two years later, Consumer Reports stated that the Quadra could be dangerous to consumers' health, because of the trace levels of ozone
Ozone
Ozone , or trioxygen, is a triatomic molecule, consisting of three oxygen atoms. It is an allotrope of oxygen that is much less stable than the diatomic allotrope...
produced by the unit. As a result, sales plummeted, and the stores took back units, even ones that were years old, for a cash refund. The Sharper Image's response was to work with the Engelhard Corporation and create an ozone catalyst that would reduce the purified air of excess ozone before it circulated throughout the room.
External links
- The Sharper Image website
- Profile from Finance on Yahoo!
- Investor Relations
- http://www.forbes.com/facesinthenews/2008/04/10/levin-sharper-image-face-markets-cx_mlm_0410autofacescan02.html"Sharper Image Chairman Jumps Ship," ForbesForbesForbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
, 4/10/08]