SHARPER IMAGE FILES FOR CHAPTER 11 BANKRUPTCY PROTECTION

Sharper Image filed for chapter 11 bankruptcy protection late Tuesday. The filing is an effort by the company to continue operations while renegotiating with creditors and likely restructuring the company to emerge as a healthy business. The filing indicates that the company has $251.5 million in assets, $199 million in debts, and $700,000 cash on hand.

From USA Today:

Sharper Image is in a severe liquidity crisis," Chief Financial Officer Rebecca Roedell said in a separate filing.

She said the company has suffered from increased competition, narrowing margins, litigation, lower consumer and market confidence, tighter credit from suppliers, and poorly performing stores. "The foregoing has been compounded by the ever-tightening and volatile credit and financing markets," she added.

Sharper Image has seen its sales decline steadily since 2004, and it has posted net losses in fiscal 2005, 2006, and 2007.