After “declining sales, three straight years of losses and litigation involving its Ionic Breeze air purifiers,” Sharper Image has filed for Chapter 11 bankruptcy.
The filing happened late yesterday in bankruptcy court in Wilmington, Delaware.
Sharper Image says it has $251.5 million in assets, $199 million in debt, and roughly $700k cash on hand.
And it has a stock price of 52 cents on Nasdaq.
What’s up with the lawsuit?
A class-action suit was filed against the company for misleading customers about the effectiveness of their air purifiers.
Earlier this year Sharper Image agreed to settle the lawsuit and agreed to discount their high-tech gadgets by more than $60 million and to offer a $19 merchandise credit to customers who have purchased an “Ionic Breeze” since May 6, 1999.
UPDATE: Bloomberg is reporting that Sharper Image will be closing 90 of its 184 stores.
[Via Reuters]
Filed under: tech | Tagged: bankruptcy, gadget, image, lawsuit, sharper, tech
