Shopping blues

Filed for Chapter 11 protection on February 19, 2008

After four years of declining profits, The Sharper Image, a San Francisco-based chain that sells gizmos ranging from handheld massagers to futuristic GPS devices, finally succumbed to bankruptcy this spring. The retailer, which operated 184 stores, struggled with growing debts and an insurmountable battle against big box retailer Best Buy. The consumer electronics industry is increasingly competitive, due in large part to online retailers and auction sites. But The Sharper Image also owes its collapse to bad publicity over its Ionic Breeze air purifier; when Consumer Reports criticized the product in 2003, the retailer sued the publication and lost. The retailer initially proposed to close just half of its stores, but on May 29th a group of liquidators purchased the company, announcing plans to dissolve it.

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