The Sharper Image is back to accepting gift cards, following its Chapter 11 bankruptcy filing last month. But the chain has added some stiff rules to its redemption policy.
The company said it would accept gift cards if customers spend all the money on the card at one time and buy something that costs twice as much as the gift card’s value. For example, people with a $25 gift card must spend at least $50, according to the firm’s new policy.
“While some conditions apply under the approved new voluntary policy, we hope our customers will consider this a fair solution,” said Robert Conway, CEO of The Sharper Image, in a statement.
Gift card redemption is “purely voluntary,” The Sharper Image said on its Web site. Details are available at www.sharperimage.com.
Meanwhile, competitor Brookstone has capitalized on Sharper Image’s problems. It said earlier this month that it would swap Sharper Image gift cards in exchange for 25% discounts off its products. The offer came about when Sharper Image said it was suspending acceptance of its gift cards, rewards cards, gift certificates and merchandising certificates because of its Feb 19 bankruptcy protection filing (Promo P&I, March 5, 2008).
In other news, Sharper Image announced it plans to close 96 of its 184 specialty stores nationwide as part of a plan to reorganize and liquidate its assets, according to news reports.
Despite the closings, the firm has signed an expanded, multiyear licensing agreement with MerchSource, LLC, a manufacturer of electronic gifts and other items. Under the agreement, MerchSource will offer an expanded assortment of Sharper Image branded electronic gift items, which include digital photo keychains and MP3 players.
The new offerings will also feature a broader assortment of digital photo viewers, a wider array of radio-controlled replica toys, and new categories of massage and other wellness items, as well as several soft goods gift categories, including memory foam slippers and plush home décor items. The products will be available in the fall at The Sharper Image stores, its catalog and on the Web site.
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