Sequiam Biometrics (fka SQUM)

[analystslie]

Usually, the filing of a bankruptcy petition means existing bills won't be paid until a Chapter 11 plan is in place. Sharper Image, however, said it would be "extremely disruptive" to its business to force the Asian suppliers to wait for payment.

Pending litigation over Sharper Image's air purifiers was one of the factors cited for the liquidity crisis that drove the company to file for Chapter 11 protection. Once one of Sharper Image's highest margin products, the Ionic Breeze air purifiers have drawn lawsuits, including one in Florida that the company attempted to settle.