SCOTTeVEST is pursuing an acquisition of SkyMall, just days after the in-flight catalog filed for bankruptcy protection.
Scott Jordan, the founder of SCOTTeVEST, an Idaho company that makes tech-friendly clothing, has put in a bid for SkyMall.
He has not revealed the bid’s value since he is under a nondisclosure agreement with the company handling the sale of SkyMall.
Scott Jordan’s decision to put in a bid comes just after SkyMall announced it was bankrupt.
SkyMall has worked with SCOTTeVEST in the past.
The SkyMall brand is so big that other bids are to be expected.
Scott Jordan already has plans for the company, saying he will “bring SkyMall into the digital age”. Part of the reason why SkyMall has gone bankrupt is because devices such as laptops have removed the need for in-flight magazines.
SkyMall sells merchandise from a variety of sources, including its own curated selection of items. It also has allowed advertisers like SCOTTeVEST to place paid ads in the catalog. But in all cases, customers are encouraged to make purchases directly through the magazine (by phone or Web site) rather than directly through the manufacturer.
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SkyMall shopping magazine has filed for bankruptcy protection.
The in-flight catalog is popular for selling unusual gadgets and other oddities.
“With the increased use of electronic devices on planes, fewer people browsed the SkyMall in-flight catalog,” the company’s interim chief executive, Scott Wiley, said in court papers.
The magazine’s parent company, Xhibit Corporation, said SkyMall revenues were $15.8 million in 2014.
That is a nearly 50% decline from 2013.
In 2014, the company suffered large setbacks when both Delta Airlines and Southwest Airlines said they would cease carrying the catalogue.
Furthermore, SkyMall had been hurt in recent years by the sluggish US economic recovery.
“A substantial portion of the products and services SkyMall offers are products or services that consumers may view as discretionary items rather than necessities,” the company wrote in its filing.
SkyMall’s parent Xhibit said it would hold an auction of the company’s remaining assets on March 24.
It said the company had approximately $1 million to $10 million in assets and liabilities that ranged from $10 million to $50 million.
The company, which was founded in 1989, is based in Phoenix, Arizona and has around 150 employees.
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