Bankrupt Sharper Image robbed customers
Posted by Dave Jackson (Scoop0901) on Thursday, March 6, 2008 @ 10:18 am In Business, Crime, Ethics, Government, History, People, and Society | No Comments
I’ve considered buying from Sharper Image in the past, but now with the company in bankruptcy proceedings, a lot of stuff is becoming clear about my horse sense.
Have you ever considered doing something or going somewhere, but even the mere thought gave you a bad impression? Well, that’s how it was with a lot of the disclaimers that were on the site the times I considered making a purchase: it make me nauseous.
Now, with Sharper Image in bankruptcy court, a lot of behind-the-scenes details are coming out, such as what appears to be a plan to rob customers during this past holiday shopping season. That’s right, rob them. I prefer the term rape for situations like this, but too many soft-hearted people think of but one meaning for that word, so in that case, we will stick with rob, robbery, and robbed-blind.
It seems that during this past holiday shopping season, Sharper Image sold an estimated $75 million in gift cards. Seventy-five million dollars with of pieces of plastic that are supposed to be worth a specific dollar amount, as indicated on the front of the card, such as $25, $50, or $100. Giving gift cards has actually become the in-thing to do in many circles, some say.
Now, with Sharper Image in bankruptcy, those people who have gift cards are learning they have a seemingly worthless piece of non-eco-friendly plastic in their wallets, but also that the money on the cards were "a loan" to Sharper Image and not really a gift to the card holder. That’s the rules of the bankruptcy court.
If I were one of the people who bought a Sharper Image gift card for someone and they had no yet used it, I would be calling my credit card company to filing a complaint, as I would not have given a loan to a company without collateral in my hands. A loan implies someone gave something to another for a period of time, but that the one making a loan has something of value from the other person — that collateral thing.
Should anyone feel sorry for Sharper Image and its situation right now? My first inclination is to say, "No, not at all." But if the company collapses, everyone with money on the gift cards loses out. Even if the company does make some kind of miraculous recovery — the Board certainly will make out nicely, right? — the cards will still be valueless chunks of plastic, or, if the company wants to "make nice," they will offer a percentage of the card’s original value, perhaps 25 percent of the original value.
Since Sharper Image knew it was bleeding to death, yet taking in everyone’s money and not warning the consumers that the corporate arteries were about to burst, I say let the ship sink, and make sure all the top executives and shareholders get robbed, too. Don’t let anyone — aside from the workers on the floors in the stores, those in the warehouses, and possibly, even, those folks who manned the phones for the call center — walk away with severance packages. No one else gets a penny.
In looking at increasing business and stealing some of Sharper Image’s former customers, some rival (or is that now former rivals?) shops are offering gift card holders discounts. Merrimack and The Pure Pro are two shops that have come forward with offers aimed at Sharper Image customers, and more importantly, those former Sharper Image customers with gift cards who have been robbed.
Article printed from Scoop’s Views: http://blog.scoop0901.net
URL to article: http://blog.scoop0901.net/government/sharper-image-robbed-customers-and-now-its-payback/
URLs in this post:
[1] Sharper Image: http://technorati.com/tags/Sharper%20Image
[2] robbery: http://technorati.com/tags/robbery
[3] robbers: http://technorati.com/tags/robbers
[4] theft: http://technorati.com/tags/theft
[5] credit cards: http://technorati.com/tags/credit%20cards
[6] gift cards: http://technorati.com/tags/gift%20cards
[7] money: http://technorati.com/tags/money
[8] bankruptcy: http://technorati.com/tags/bankruptcy
[9] Chapter 11: http://technorati.com/tags/Chapter%2011
[10] severance packages: http://technorati.com/tags/severance%20packages
[11] executives: http://technorati.com/tags/executives
[12] loans: http://technorati.com/tags/loans
[13] lenders: http://technorati.com/tags/lenders
[14] lending institutions: http://technorati.com/tags/lending%20institutions
[15] shareholders: http://technorati.com/tags/shareholders
[16] sales floor: http://technorati.com/tags/sales%20floor
[17] warehouses: http://technorati.com/tags/warehouses
[18] call centers: http://technorati.com/tags/call%20centers
Click here to print.
Copyright 2004-2008 by Dave Jackson (Scoop0901). All rights reserved.