Bankrupt multi-channel specialty retailer The Sharper Image Corp. will sell its remaining assets for a reduced price of $49 million. The deal was approved by a U.S. bankruptcy court last week.
The negotiated price is $2.25 million lower than the $51.25 million buyers Gordon Brothers Retail Partners LLC, GB Brands LLC, Hilco Merchant Resources LLC and Hilco Consumer Capital LLC had said they would pay in May. In a statement released today, The Sharper Image, No. 176 in the Internet Retailer Top 500 Guide, attributed the lower price to “changed circumstances.”
Sharper Image could qualify for an additional $1.5 million payment if it meets certain undisclosed contingencies, but the retailer says it does not believe it will receive the additional funds.
Sharper Image, which filed for Chapter 11 bankruptcy in February after several years of slumping sales. Internet Retailer estimates Sharper Image`s web sales totaled $57.23 million in 2007, down from $85.2 million a year earlier.