Sharper Image Corporation (the “Company”) (Pink Sheets:SHRPQ), announced today that on May 14, 2008 the United States Bankruptcy Court for the District of Delaware (the “Court”) approved procedures in connection with a sale of all or substantially all of the assets of the Company at an auction to be held on May 28, 2008 (the “Auction”). In connection with those procedures, the Court also authorized the Company’s entry into an Asset Purchase Agreement and an Agency Agreement, each dated May 13, 2008, with a joint venture of Gordon Brothers Retail Partners, LLC, GB Brands, LLC, Hilco Merchant Resources, LLC, and Hilco Consumer Capital, LLC (the “Hilco/GB Joint Venture”). Hilco/GB Joint Venture will serve as a stalking horse bidder for the purposes of the Auction. Hilco/GB Joint Venture’s Asset Purchase Agreement and Agency Agreement are offers to purchase certain of the Company’s assets, including, among other things, its intellectual property and intellectual property rights, as well as the right to liquidate merchandise within certain of the Company’s stores and/or distribution centers for, in addition to other consideration, a cash payment of $51,250,000.00. Hilco/GB Joint Venture’s Asset Purchase Agreement and Agency Agreement are subject to higher or better offers at the Auction and are subject to final Court approval. Robert Conway, Chief Executive Officer of the Company, stated that the Hilco/GB Joint Venture bid is “the best offer that the Company has received in connection with the proposed sale to date, and promises to help maximize the value of the Company’s assets by creating a competitive bidding environment” at the Auction.
The hearing to approve the winning bid at the Auction is scheduled to follow on May 29, 2008.
About Sharper Image
The Sharper Image is a specialty retailer that is nationally and internationally renowned as a leading source of new, innovative, high-quality products that make life better and more enjoyable. The Company's principal selling channels include Sharper Image specialty stores throughout the United States; the award-winning Sharper Image monthly catalog; and its primary Web site, www.sharperimage.com. The Company also has business-to-business sales teams for marketing its exclusive and proprietary products for corporate incentive and reward programs and wholesale to selected U.S. and international retailers.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
