bankrupt

Villemont Geneve Watches Sadly Goes Belly-Up

Watch maker Villemont Geneve recently filed for bankruptcy after the boutique brand declared it was insolvent. After closing its doors, the brand made no mention of being purchased or saved, though their website is still operational. This comes as sad news as the weakening economy is beginning to have a serious effect on watch makers, especially those with a low volume output. Villemont produced only 311 watches last year, with a volume around that amount on average each year. The company employed just over a dozen employees.

When a watch maker sells only a small amount of watches each, it relies on a good deal of profit from each watch. A large dip in sales from a company with already slim distribution can spell disaster. Larger companies with higher volume and wider distribution are not immune from the economic situation, but can hold on much better.

In stronger economic times, boutique brands with niche products offer wonderful variety to the watch industry. The current economic situation will likely spell disaster for many unique brands just like Villemont, and larger companies may be less likely to offer experimental or overly avant garde watch designs until the economy improves.

Ariel Adams publishes the watch review site aBlogtoRead.com.

Tags: bankrupt, industry, luxury economy, LuxuryEconomy, timepiece, villemont, watch

The Sharper Image Files for Bankruptcy

by Rigel Celeste (RSS feed) —

Filed under: Gadgets

The Sharper Image, home over the years of all kinds of iconic gadgets like Razor Scooters and the Ionic Breeze air purifier line, has filed for Chapter 11 bankruptcy. They've seen net losses for the last 3 years, and earlier this week their stock plummeted all the way down to $0.41 per share.

Their downfall seems tied to the fact that they've always been so focused and dependent on the success of very limited and focused products. They're hoping to make a comeback, though, borrowing $60 million dollars and closing 60 of 183 stores nationwide.

I've always loved shopping in their stores and browsing their catalogs -- I hope they get it together and recover from this!

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Tags: bankrupt, bankruptcy, chapter 11, Chapter11, sharper image, SharperImage