Sharper Image's Founder to Depart Jerry Levin Named Chairman and Interim CEO
Thursday, 28 September 2006
Sharper Image Corportion has announced that company founder Richard Thalheimer had stepped down as chairman and chief executive under pressure from a group of dissident shareholders disappointed with the company’s recent performance. The Board of Directors appointed Jerry W. Levin, a director of the company only since July, to act as chairman and interim chief executive officer, effective immediately.
The company, which is based in San Francisco, has struggled as sales of its Ionic Breeze air purifier, an important profit driver, have fallen in the face of increased competition and bad publicity, according to The New York Times. Its shares are down 27 percent in the year through Monday, and, in its last fiscal year, sales fell 12 percent, to $648.9 million. Sales at stores open at least one year fell 16 percent in the fiscal year ended Jan. 31.
Levin is a seasoned CEO with significant turnaround experience. He is Chairman and CEO of JW Levin Partners LLC, which specializes in the rebuilding of branded consumer product and service companies. The Board has engaged JW Levin Partners for a period of one year to help address Sharper Image’s operating issues.
Previously, Levin served as chairman and chief executive officer of American Household, Inc., formerly named Sunbeam. Prior to that, he served as chief executive officer of Revlon, Inc. and The Coleman Company, Inc. From 1974-1989, Levin worked for the Pillsbury Company in a number of executive management roles.
In addition to serving on the Board of Sharper Image, Levin also serves on the Boards of Wendy’s International, Inc., US Bancorp and Ecolab Inc. and chairs the Governance Committees of both US Bancorp and Ecolab Inc.
The Sharper Image Board of Directors said, “With his extraordinary integrity, experience and business acumen, we are confident that Jerry is the ideal person to ensure a smooth transition and lead our efforts to strengthen the business, put the company back on the path to profitable growth and create shareholder value.”
Levin said, “Sharper Image has a great brand name and strong customer base. Our immediate priority is to develop and implement a plan of action that takes full advantage of these fundamental strengths and addresses the operating issues facing the company.”
The Board will begin immediately an executive search to find a CEO with strong leadership skills, merchandising experience and a history of business success.
The Board also said, “The success of Sharper Image in the past has been due to Richard and his vision, and we are grateful for his contributions and many years of service. We wish him well in his future endeavors.”