Richard Thalheimer
Encyclopedia
Richard Thalheimer is founder, and former CEO and chairman, of The Sharper Image
Corporation.
before the American 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 J.D.
degree, and was admitted to the California Bar in July 1974.
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 introducing 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, with almost 200 stores in the US. He is credited with originating the upscale "gadget business" in catalog and stores, and was one of the first to utilize the power of the internet when The Sharper Image started selling online in 1996.
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 television infomercials 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.
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 continued friction between the new Board members and Thalheimer; he was replaced by CEO Jerry W. Levin
, former CEO of Revlon
, The Coleman Company and American Household(formerly Sunbeam Corporation). For six months, Thalheimer remained on the company's Board of Directors
and kept his spot as the largest shareholder of The Sharper Image until May 2007 (21%).
Thalheimer was ousted as CEO of The Sharper Image due to the belief by the new Board members that they could make the company perform better, and move the stock price higher.
In May 2007, the hedge fund Board members approached Thalheimer to buy his remaining shares, following up their belief that they were about to move the company ahead, and that the share price would soon increase. After a lengthy negotiation, he sold his full
remaining stock position in the company he founded 30 years prior, for $25 million, or 9.25 per share. This proved to be a fortuitous sale, as the new Board members' ambitions were not realized, sales declined under their supervision, and 9 months later, their shares were worthless.
Inc. Magazine interviewed Thalheimer in July 2008 about the passing of Sharper Image.
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.
, just 18 months after Thalheimer left, and only 9 months after buying out Thalheimer. The company closed all of its 184 stores in August 2008.
The Sharper Image
The Sharper Image is an American product brand, formerly associated with a defunct retail company, now licensed for use on consumer electronics and gift products....
Corporation.
Early life
Thalheimer's family settled in ArkansasArkansas
Arkansas is a state located in the southern region of the United States. Its name is an Algonquian name of the Quapaw Indians. Arkansas shares borders with six states , and its eastern border is largely defined by the Mississippi River...
before the American Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...
and started a livery
Livery
A livery is a uniform, insignia or symbol adorning, in a non-military context, a person, an object or a vehicle that denotes a relationship between the wearer of the livery and an individual or corporate body. Often, elements of the heraldry relating to the individual or corporate body feature in...
business. Thalheimer was raised in Little Rock. After graduating from Hall High School
Hall High School (Arkansas)
Hall High School, located in Little Rock, Arkansas, is a comprehensive four-year public high school in the Little Rock School District currently enrolling 1,389 students in grades nine through twelve.-History:...
in Little Rock, Arkansas
Little Rock, Arkansas
Little Rock is the capital and the largest city of the U.S. state of Arkansas. The Metropolitan Statistical Area had a population of 699,757 people in the 2010 census...
, he left for New Haven and graduated from Yale University
Yale University
Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
in 1970. He entered San Francisco's University of California, Hastings College of the Law
University of California, Hastings College of the Law
University of California, Hastings College of the Law is a public law school in San Francisco, California, located in the Civic Center neighborhood....
the following year, graduated with a J.D.
Juris Doctor
Juris Doctor is a professional doctorate and first professional graduate degree in law.The degree was first awarded by Harvard University in the United States in the late 19th century and was created as a modern version of the old European doctor of law degree Juris Doctor (see etymology and...
degree, and was admitted to the California Bar in July 1974.
Career
While still a law student, the 24-year-old Thalheimer started a part-time office supplyOffice Supply
Office Supply is a New Wave band consisting of three keyboardists. The band has successfully released their debut album Work in Progress, on the independent record label Toaster Records on April 30, 2006...
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 introducing 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, with almost 200 stores in the US. He is credited with originating the upscale "gadget business" in catalog and stores, and was one of the first to utilize the power of the internet when The Sharper Image started selling online in 1996.
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
Gavin Newsom
Gavin Christopher Newsom is an American politician who is the 49th and current Lieutenant Governor of California. Previously, he was the 42nd Mayor of San Francisco, and was elected in 2003 to succeed Willie Brown, becoming San Francisco's youngest mayor in 100 years. Newsom was re-elected in 2007...
for mayor, over the Green party candidate, Matt Gonzalez
Matt Gonzalez
Matthew Edward Gonzalez is an American politician, lawyer, and activist prominent in San Francisco politics. He currently serves as chief attorney in the San Francisco Public Defender's office....
.
Thalheimer and his daughter have appeared in a television infomercials 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.
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 continued friction between the new Board members and Thalheimer; he was replaced by CEO Jerry W. Levin
Jerry W. Levin
Jerry W. Levin, born in 1944, is an American businessman.Levin is an experienced CEO, turnaround expert and mergers & acquisitions specialist. He has been growing the sales and profits of branded consumer products companies for the past 30 years via internal product development programs,...
, former CEO of Revlon
Revlon
Revlon is an American cosmetics, skin care, fragrance, and personal care company founded in 1932.-History:Revlon was founded in the midst of the Great Depression, 1932, by Charles Revson and his brother Joseph, along with a chemist, Charles Lachman, who contributed the "L" in the Revlon name...
, The Coleman Company and American Household(formerly Sunbeam Corporation). For six months, Thalheimer remained on the company's Board of Directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
and kept his spot as the largest shareholder of The Sharper Image until May 2007 (21%).
Thalheimer was ousted as CEO of The Sharper Image due to the belief by the new Board members that they could make the company perform better, and move the stock price higher.
In May 2007, the hedge fund Board members approached Thalheimer to buy his remaining shares, following up their belief that they were about to move the company ahead, and that the share price would soon increase. After a lengthy negotiation, he sold his full
remaining stock position in the company he founded 30 years prior, for $25 million, or 9.25 per share. This proved to be a fortuitous sale, as the new Board members' ambitions were not realized, sales declined under their supervision, and 9 months later, their shares were worthless.
Inc. Magazine interviewed Thalheimer in July 2008 about the passing of Sharper Image.
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.
Company bankruptcy
Sharper Image filed for protection on February 19, 2008 with the U.S. bankruptcy court in Wilmington, DelawareWilmington, Delaware
Wilmington is the largest city in the state of Delaware, United States, and is located at the confluence of the Christina River and Brandywine Creek, near where the Christina flows into the Delaware River. It is the county seat of New Castle County and one of the major cities in the Delaware Valley...
, just 18 months after Thalheimer left, and only 9 months after buying out Thalheimer. The company closed all of its 184 stores in August 2008.