Check Out investors bailing on cash-strapped electronics retailer Sharper Image Corp after the company filed for Chapter 11 bankruptcy protection following three straight years of losses.
Its stock plunged to a lifetime low after the company announced it only had $700,000 in cash on hand. According to court documents, Sharper Image said it had $251.5 million in assets and $199 million in debt as of Jan. 31.
Things have gotten so bad for Sharper Image that many of its vendors and suppliers have taken to requesting cash upon delivery of products, court papers show.
But the company isn’t quite ready to throw in the towel.
Sharper Image is seeking a $60 million loan arranged by Wells Fargo Retail Finance LLC to keep operating, according to court papers. And it replaced Chief Executive Steven Lightman with Robert Conway last week.
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(Photo: Reuters)
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