Sharper Image, which filed for bankruptcy in February, is moving to close its remaining 86 stores to pursue a global licensing strategy focused on wholesale, catalog and online sales.
Hilco and Gordon Brothers led a group of investors including Bluestar Alliance, Windsong Brands and Crystal Capital in purchasing Sharper Image's assets for $49 million.
Sharper Image built its empire in the 1980s and 1990s selling high-end novelty gadgets like cordless phones, digital answering machines, vibrating chairs, and nose-hair trimmers. But many of its devices have since become commodity items, and it hasn't had a blockbuster hit since Razor scooters.
Also contributing to its demise was negative publicity surrounding the Ionic Breeze after a Consumer Reports review in 2003 found the air purifiers were not only ineffective but emitted harmful ozone gas. Lawsuits followed.
But now, the new owners plan to partner with several global institutions to continue development of the company as a licensing property. According to the New York Post, Sharper Image generated between $5 million and $8 million in licensing revenue over the past year, helping support its sale price.
"We are proceeding immediately with our plans to partner with world class licensees and retailers to introduce innovative high quality products that will satisfy both the needs and enjoyment of The Sharper Image customers," said Jamie Salter, CEO of Hilco Consumer Capital, in a statement. "The Sharper Image brand will be extended internationally in existing and new categories that consumers want and need."
"Internationally," added Joseph Gabbay, president of Bluestar, "the integrity of the brand is top in its field. The Sharper Image connotes quality and excitement with products that are unique in both feature and function, and translate into almost all categories."
Discussion Question: Do you think Sharper Image has run its course as a retailer? What do you think of the licensing opportunity its new owners are pursuing for the Sharper Image brand?