Sharper Image CEO Loses Proxy Fight, Steps Down

Sharper Image founder, CEO and most public face Richard Thalheimer has stepped down, with the Associated Press claiming he was ousted by his company's board of directors. Jerry Levin, who led a group of dissident shareholders and gained a seat on the firm's board in July, will serve as chairman and acting CEO, effective immediately.

Levin is chairman and CEO of JW Levin Partners LLC, a corporate turnaround firm. He previously was chairman and CEO of American Household Inc., formerly known as Sunbeam. Before that, he was CEO of Revlon Inc. and The Coleman Company Inc. From 1974-198, he held a number of positions within the Pillsbury Company.

Sharper Image's executive roster changes cap a rough year for the San Francisco-based firm. Its same-store sales have declined significantly, and its overall sales have dropped for a year and a half. The company recently announced that it had not properly accounted for stock options awarded to its executives, and may have to restate its financial results for the last three years.

Sharper Image is currently behind in filing its most recent quarterly financial statements with the Securities and Exchange Commission, and Nasdaq had sent it a letter saying that it was not in compliance with the exchange's listing requirements.

Wall Street reacted well to the management change. The company's stock, which had been trading between $9 and $16 per share during the past year, jumped 96 cents on Tuesday and closed at $10.33 per share.