Sharper Image files for chapter 11 bankruptcy
The retail chain Sharper Image has filed for chapter 11 bankruptcy. The reason they stated is a decline in sales, three years straight with record losses, and legal issues surrounding their Breeze air purifiers.
The San Francisco based company Sharper Image is reported to have about 251.5 million in assets and close to 200 million in debt. After the announcement the stock price dropped 92 cents, which is about 64% of the overall price.
Chief Financial Officer Rebecca Roedell said the company has suffered from increasing competition, legal fees, narrowing margins, poorly performing chains, and lowering consumer market. She also noted that the company’s problems have been compounded over tightening credit from finance markets.
The company has been in the media recently for problems and litigation surrounding its once popular Breeze air filter. In October a federal court denied the approval of a settlement from its class action lawsuit surrounding the actual efficacy of the Breeze Air purifier. Following this ruling Sharper Image’s stock dropped 18%, which lowered their terms from creditors and weakened support from financial backers.
Sharper Image once dealt with around 650 vendors, many of whom began to require cash upon delivery after the legal proceedings.
According to court papers Sharper Image is seeking a $60 million loan from Wells Fargo to continue operations and salvage the company.
Urgent News About The Ionic Breeze Air Purifier By Sharper Image!
According to consumer reports the Ionic Breeze Air Purifier by Sharper Image fails to significantly clean the air and can even be exposing some users to potentially dangerous ozone levels. Consumer Reports also said that during testing of the Ionic Breeze Air Filter that it was ineffective as an air cleaner.
Consumer Reports also mentioned four other models as being ineffective including the Brookstone Pure-Ion, Pro CL-369, IonizAir P4620, and the Surround Air XJ-2000.
The magazine also stated that people with allergies and asthma are especially sensitive to increased ozone levels and that being subjected to them can actually worsen their symptoms and may lead to permanent lung damage.
These reports came out only two months after Sharper Image agreed to pay Consumer’s Union, the publisher of Consumer Reports, over $500,000 in legal costs after a federal judge dismissed a lawsuit, which alleged Consumer reports printed false information in October 2003 about the Ionic Breeze Air Purifier.
Consumer Reports stands behind its findings about the Ionic Breeze and maintains that there is no bias towards any of their tested products.
Clean Your Air a Better Way
As experts in IAQ (Indoor Air Quality) we recommend that if you have purchased an Ionic Breeze Air Purifier that you return or dispose of it immediately. The best option you could take is to have a look around our website www.aircleaners.com and purchase one of our HEPA certified air cleaners.
Our HEPA approved air purifiers are of the same grade and quality used in hospitals, laboratories, and cleanrooms. They emit NO OZONE contaminants and with greatly improve the air quality in your home or business.