R.I.P. SkyMall

January 25, 2015

http://www.wsj.com/articles/in-flight-catalog-skymall-files-for-bankruptcy-1422025308

The company behind the in-flight catalog SkyMall filed for bankruptcy protection, a victim of evolving rules and technology that now lets airline passengers keep their smartphones and tablets powered up during flight.

After 25 years selling quirky products like a Darth Vader toaster or a paper towel holder with USB ports, SkyMall LLC is seeking a court supervised sale of its assets, according to papers filed Thursday with the U.S. Bankruptcy Court in Phoenix.

“We are extremely disappointed in this result and are hopeful that SkyMall and the iconic ‘SkyMall’ brand find a home to continue to operate,” acting Chief Executive Scott Wiley said in a statement Friday.

The company, which started in 1989, fully suspended its retail catalog operation Jan. 16, and laid off 47 of its 137 employees, according to court papers. SkyMall’s parent companyXhibit Corp. , which acquired the business in 2013, is also seeking Chapter 11 protection.

Mr. Wiley cited a “crowded, rapidly evolving and intensely competitive” retail environment as the reason for the quarterly publication’s recent struggles. “With the increased use of electronic devices on planes, fewer people browsed the SkyMall in-flight catalog,” he said.

The catalog can often be found in the seat pockets on many domestic flights, but airlines have been cutting back. Delta Air Lines ended its contract with SkyMall in November, court papers said, and Southwest Airlines informed the company in December that it would stop carrying the catalog later this year. “We saw a decline in customer use of the publication,” a Delta spokesman said.