Richard Thalheimer
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Richard Thalheimer (born 1948) is founder, and former CEO and chairman, of The Sharper Image Corporation.
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[edit] Early life
Thalheimer's family settled in Arkansas before the Civil War and started a livery business. Thalheimer was raised in Little Rock. After graduating from Hall High School in Little Rock, Arkansas, he left for New Haven and graduated from Yale University in 1970. He entered San Francisco's University of California, Hastings College of the Law the following year, graduated with a JD degree, and was admitted to the California Bar in July 1974.
[edit] Career
While still a law student, the 24-year-old Thalheimer started a part-time office supply business with $500 worth of copier paper. He named his fledgling enterprise "The Sharper Image," in part to help promote the quality of his copy machines.
After graduating from law school in 1974, Thalheimer passed the California bar exam and practiced law, but only for about a year. In 1977, Thalheimer found a product he believed would sell well — a runner's watch. Later, he discovered additional products that allowed The Sharper Image to increase sales, including the children's two wheel Razor Scooter, and the company's most successful product, the Ionic Breeze Air Purifier.
As a result of the success of the Ionic Breeze, revenues rose to a record $760 million in 2003.
Thalheimer has from time to time attempted to influence politics in San Francisco, going so far as to send an email in 2003 to all corporate office employees of his company in which he suggested they vote for the business-friendly Gavin Newsom for mayor, over the Green party candidate, Matt Gonzalez.
Thalheimer and his daughter have appeared in a commercial for the Sharper Image's Ionic Breeze, as well as the FresherLonger Miracle Food Storage Set.
In March 2006, a hedge fund group purchased shares in Sharper Image and demanded Board representation. A compromise was reached, and Thalheimer installed three of these shareholders on the Board. [1]
The relationship between founder Thalheimer, and the new Board members was not to prove successful. On September 26, 2006, Thalheimer was removed as CEO due to the company's recent loss in profits; he was replaced by CEO Jerry W. Levin, under whom American Household, Inc. (formerly Sunbeam Corporation), filed for bankruptcy protection in 2001. For six months, Thalheimer remained on the company's Board of Directors and kept his spot as the largest shareholder of The Sharper Image (21%). [2]
Thalheimer was ousted as CEO of The Sharper Image due in large part to the company's failing sales and declining stock price. This was brought about in large part by Thalheimer unsuccessfully trying to sue Consumer Reports for articles written about the company's # 1 selling product -- the Ionic Breeze. The articles were unfavorable towards the device, and claimed it did not work as the company proclaimed. The case was a no-win for either side, but the damage had already been done.
In May 2007, the hedge fund Board members approached Thalheimer to buy his remaining shares. He sold his remaining stock position in the company he founded 30 years prior, for $25 million, or 9.25 per share. 9 months later, the shares were worthless. [3]
Inc. Magazine interviewed Thalheimer in July 2008 about the passing of Sharper Image. [4]
He has since started a new website, www.RichardSolo.com. It is a private company, featuring the same genre of products previously sold at The Sharper Image and makes a claim of providing very attentive customer service. In July 2008, a product featured prominently on his website became quite popular. [5]
[edit] Company bankruptcy
Sharper Image filed for protection on February 19, 2008 with the U.S. bankruptcy court in Wilmington, Delaware after three years of losses and litigation involving its Ionic Breeze air purifiers. The company closed all of its 184 stores in August 2008.
[edit] References
- ^ http://www.forbes.com/commerce/forbes/2008/0630/064.html
- ^ AP Article
- ^ http://www.nypost.com/seven/04142008/business/sharper_image_feud_is_heating_up_106504.htm
- ^ http://www.inc.com/magazine/20080701/losing-an-edge.html
- ^ http://news.bostonherald.com/business/technology/reviews/view.bg?articleid=1108571
