Sharper Image files for bankruptcy

February 21, 2008 8:01:41 AM PST
San Francisco-based Sharper Image is blaming a continued drop in sales and record net losses for its decision to file for bankruptcy protection.In filing for reorganization under Chapter 11 of the bankruptcy code, the chief financial officer for the specialty retailer says the company is in a "severe liquidity crisis."

In Tuesday's filing with the U.S. Bankruptcy Court for the District of Delaware, Sharper Image says has experienced declining sales since 2004 and recorded net losses in fiscal 2005 to 2007.

The company says it will close 90 of its 184 stores as soon as possible after it sells their inventories.

Word of the bankruptcy has sent shares of Sharper Image down to just pennies a share.

Sharper Image stock was trading at 41 cents, a drop of more than 70 percent.