Type Subsidiary Founder Richard Thalheimer | Website www.sharperimage.com | |
 | ||
Industry Consumer Electronics and Lifestyle Products Key people David Katzman,
Managing Partner, Camelot Venture Group Parent Camelot Venture Group
ThreeSixty Group, Inc. Headquarters New York City, New York, United States CEO Robert P. Conway (Feb 2008–) Founded 1977, San Francisco, California, United States Profiles | ||
The Sharper Image is an American brand that offers consumers home electronics, air purifiers, gifts and other high-tech lifestyle products through its website - SharperImage.com, catalog, and third party retailers. The Sharper Image catalog and website are owned and operated by Michigan-based Camelot Venture Group, while the brand licensing is owned by ThreeSixty Group, Inc.
Contents
The brand has been in operation since its relaunch in 2010. 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.
History
The Sharper Image Corporation was the brainchild of Richard Thalheimer. The company started as a catalog business to sell jogging watches.
In 2006 there was a change 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.
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.
Bankruptcy
On February 19, 2008, the Sharper Image stock reached a then-record 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 NASDAQ 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.
Post-bankruptcy
On May 29, 2008, a joint venture led by units of private investment firms Hilco Consumer Capital, Infinity Lifestyle Brands, Gordon Brothers Group and Bluestar Alliance won a bankruptcy auction to acquire the assets of The Sharper Image, paying $49 million plus some contingent recovery for the company's assets. The Sharper Image name was licensed and used to sell products through third party retailers, including Best Buy, Bed Bath & Beyond, OfficeMax, Big 5 Sporting Goods, or through the branded website. New products were created through partnerships with other businesses.
Relaunch
In August 2009, Camelot Venture Group secured the rights to operate a new Sharper Image catalog and website, SharperImage.com. In 2011, Iconix Brand Group bought the Sharper Image brand and controlled all licensing agreements, while Camelot Venture Group continued to operate the catalog and website. In June 2014, Camelot Venture Group acquired the rights to the consumer-facing division of the brand (catalog and e-commerce) from Iconix Brand Group. In December 2016, Irvine California-based ThreeSixty Group, owners of the FAO Schwarz brand, purchased The Sharper Image brand licensing rights from Iconix Brand Group, for USD$100 million. Camelot Venture Group continues to grow the Sharper Image brand through the website, increased catalog circulation, digital marketing, consumer promotions and heightened presence on social media.
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 infomercials 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.
Consumer Reports lawsuit
In 2002, Consumer Reports tested many fan-driven air purifiers 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.