SkyMall Faces Bankruptcy
The Skymall catalog, your favorite place to purchase Sasquatch statues, Dragon phone holders, and Spam costumes is now facing bankruptcy.
Bankruptcy After 25 Years
After 25 years of business, it seems bored fliers are no longer turning to the catalog’s pages filled with a range of sensible to outrageous products. But why? According to court documents, the magazine is attributing the change in flier’s habits to the fact that airlines have increasingly allowed the use of electronics such as tablets and computers.
Airlines End Contracts
According to court documents, last year Delta and Southwest airlines ended their contracts with the Phoenix-based catalog. In its Chapter 11 filing court documents, the company is reporting it has assets between $1 million and $10 million. Liabilities are listed between $10 million and $50 million.
Chapter 11 Bankruptcy
During a Chapter 11 bankruptcy a company is able to restructure their business in order to shed some of their debt.
Other Retailers Struggling
Similar quirky gadget retailers have also struggled since Amazon.com burst onto the scene, making it easier for consumers to just purchase from a “one-stop-shop.” Sharper Image closed its brick and mortar locations after filing for bankruptcy in 2008. The company still sells some of its products online and through a catalog. Brookstone filed for bankruptcy in 2014 and was purchased by a Chine investor. Fingerhut was set to close in 2002, but was able to take its business online and still remains open.
Source: CNN Money, SkyMall catalog lands in bankruptcy, January 23, 2015