Publish date:

Sharper Image Files for Bankruptcy

Shares plunge more than 60% on the news.

Electronic-gadgets retailer

Sharper Image

(SHRP)

filed for reorganization under Chapter 11 of the bankruptcy code Tuesday in Delaware, sending the battered stock tumbling nearly 65%.

TheStreet Recommends

The San Francisco-based company, whose sales have been slumping for months and months, said it will continue to conduct business as usual while it develops a reorganization plan.

Shares of Sharper Image were losing 93 cents, or 64.6%, to 51 cents after the filing. The stock has now fallen more than 80% in 2008.

A week ago, Sharper Image replaced CEO Steven Lightman with Ron Conway, who runs a New York-based management-consultancy firm, in an attempt to halt its sliding sales.