Sharper Image Files for Bankruptcy
Sharper Image (asi/86620), a specialty retailer and corporate incentive supplier, has filed for Chapter 11 bankruptcy. The measure comes after three years of declining sales coupled by more than $135 million in losses. The company also plans to close nearly half of its 184 stores.

As part of its bankruptcy filing, the company also announced that it would immediately stop honoring gift cards and certificates both in-store and online. That's about $25 million in gift card money, according to a recent article in MarketWatch, an online news subsidiary of Dow Jones & Company Inc. The report also cites the retailer's Form 10-K filing, in which Sharper Image listed $31 million in deferred revenue, a majority of which originates from gift cards.

Sharper Image says it will, though, continue to service its customers online and in the remaining retail stores. In the meantime, the supplier has hired veteran financial advisor Robert Conway to oversee the company's reorganization. Conway replaces Steven Lightman as CEO of the company. As far as how the reorganization will affect the supplier's approach in the ad specialty market, multiple calls to Doug Atkinson, vice president of incentive and corporate gift sales at Sharper Image, were not returned.

Steal Share From Ad Agencies; Watch The Video Report
In Counselor's March cover story, titled "An Advertising Breakthrough," we offer five in-depth tips for distributors to be able to grab some business away from their ad agency competitors.

 
Don't think you can compete on their level? The distributors we interviewed in this article are clearly doing it already, essentially turning their ad specialty operations into marketing and advertising agencies.

In this video, Counselor Editor Andy Cohen shares some of the advice offered in this article, and gives some insights into how distributors can go about changing the way they approach their markets and clients.

Flash Drive Direct Acquires USB Digital Frames
Flash Drive Direct (asi/40658), a Richmond, BC-based ad specialty supplier, has acquired USB Digital Frames, a digital picture frame designer located in Canada. Terms of the deal, which was finalized in cash, were not revealed. USB Digital Frames will continue to operate under its original name, and the suppliers will undertake joint marketing ventures to promote their complementary product lines, says John Graham, vice president of marketing for Flash Drive Direct.

Graham says the deal stemmed mainly from his company's desire to acquire more market share in the ad specialty industry and USB Digital Frames, with its numerous environmental certifications, would help take them to that next step. Some of USB Digital Frames' nature-friendly accolades include being RoHS, WEEE and Energy Star compliant. (The first two are European standards for reducing environmental waste and the latter measures energy efficiency.) The company expects sales of USB Digital Frames to triple in 2008. "This business is about being sustainable, profitable and concerned to a point where we're able to make a positive impact in whatever way we can," Graham says.

Obituary: Barbara Dorr
Barbara Dorr, co-owner of Earl Butler & Associates (asi/42910), succumbed to breast cancer on February 26. She was 62. Dorr and her husband built-up the company and moved it from Southern California to Northern Nevada after taking over from her father-in-law and founder, Earl Butler. Dorr was a dedicated member of her church and did missionary work with her husband. She was also a multiple Paul Harris Fellow of Rotary International and a member of the Daughters of the Nile, Eastern Star, Rainbow Girls and The Red Hats.

"I met Barbara first over the phone, then at a trade show and was blessed when that business relationship became friendship," says Dan Ahern, sales partner for Geiger (asi/202900). "She was a devout spouse, grandparent and member of her church; all the things that you hope to find in a friend, neighbor and colleague. The people who worked for her and with her are deeply saddened and part of that is because of the wonderful atmosphere she and Bob created for the folks of Earl Butler."

Business Partner Merges With The Entrepreneur's Source
Franchise organization Business Partner (asi/152951) has merged with The Entrepreneur's Source, an unlisted franchise-focused coaching and consulting service owned by FranchiseESource Brand International. Terms of the deal were not revealed. "What started out a year ago as a conversation about how we can refer business to the Business Partner franchisees and their organization, turned into joining forces and bringing them under the FSBI umbrella," says Terry Powell, CEO and founder of FSBI.

Business Partner's 20 franchisees will join the more than 250 franchisees already held by FSBI, giving them access to a host of additional products, services and resources. "I always knew that one day we would need to merge with a larger franchise organization with more infrastructure that can take Business Partner to the next level," says Bruce Violette, co-founder. "What FSBI brings to the table are a lot of business development tools that we've never been able to put forth."

Obituary: Ray Shearer
Ray Shearer, founder of Shearer & Associates (asi/325050), died February 27. He was 92. Born in Carlisle, PA in 1916, he was the oldest of four children. He got his first taste of the advertising specialty business in the early 1950s with the RR Perry Company, selling some of the first imprinted coffee mugs and pioneering the sale of ballpoint pens. He started Shearer & Associates in 1968, later selling it to his son-in-law in the early 1990s but continued making sales calls into his early 80s.

"He was always looking for that ‘shot of vitamin O' - getting the next order," says Rick Simpson, vice president of Shearer & Associates, who worked with Shearer for over 15 years. "He was always a gentleman with the way he treated supplier sales reps, as well as clients. He started me off in this career and was always encouraging to me. His approach to selling, his enthusiasm for the products and the results they generated was contagious."

Show Off Your Spirit; Watch The Video
In this installment of The Joe Show, Counselor Managing Editor Joe Haley displays how Spirit Snapz can be the perfect item to target the youth market. Do you have clients who are trying to attract the youngest consumers? Then this Joe Show episode is for you.

ASI Spirit Awards Nominations - Deadline Extended!
The ASI Spirit Awards Committee wants to hear from you. If you think your organization or someone you know should be commended for their achievements in 2007, now is the time to sing their praises. Nominations are now being accepted through March 7 for the following award categories:

Fastest Growing Distributor and Supplier - Recognizes supplier and distributor firms that have experienced tremendous growth over the past three years.
 
Representative of the Year - Recognizes a supplier or multiline representative who has steadily grown his or her sales through exceptional service.

Award winners will be featured in the June issue of Counselor. If you have any questions, please contact Karen Akers, awards editor, at kakers@asicentral.com.

Take The State Of The Industry Survey
Counselor is currently polling professionals in the industry to see how the market did in 2007. We need your input. We're inviting both suppliers and distributors to take our annual State of the Industry survey. So, please take some time to click the appropriate link below and complete the survey. You'll be entered into a random drawing to win up to $1,000.

Click here to take the distributor survey.

Check Out Counselor's Apparel Trends Webcast; Click Here
Looking for solid strategies to take advantage of the latest apparel trends? We've got just the thing for you. Counselor hosted a Web seminar last week that examined the newest fashion trends in promotional apparel for 2008. The panelists on the session also discussed some of the sales strategies that are necessary to take advantage of these trends.

In The News
Allegra Print & Imaging (asi/372419) was honored as the 2007 Outstanding Philanthropic Corporation of the Year by the Arkansas Community Foundation.

BIC Graphic USA (asi/40480) won a PPAI Gold Award for best full-line catalog in 2007. The supplier also received two silver awards from PPAI for exceptional screen printing.

Crystal D (asi/47759) contributed to the Freedom Calls Foundation's mission to provide communication services to military families.

Leeman Designs (asi/66920) now offers the Karen Callan collection. Formerly available only in retail stores, this product line pairs fine Italian calf-skin accessories with custom ornaments.

Metromedia is collecting outdated and discontinued promotional products to raise $10,000 for children in Kenya. For more information or to donate, contact Lanna Baird at (403) 291-3912 or lannab@metromediamarketing.com.

Pencoa (asi/77040) announces the February winners of its Customer Loyalty Program:

• First Prize ($250): Imagination 2000 LLC (asi/230196)
• Second Prize ($150): Tri-State Trophies (asi/347502)
• Third Prize ($50): Cedars Advertising Inc. (asi/159500)

People On The Move
Adventures in Advertising (asi/109480) named Greg Armstrong regional manager and Mike Irwin national director of sales.

Clegg Industries (asi/45450) named Peter Barbaresi president of the Gardena, CA-based supplier.

Golden Pacific (asi/55549) introduces three new members to its Edison, NJ distribution center: Don Spencer, account executive; Takaiya Horton-Lewis, graphic designer; and Donna Summerall, customer service rep. East Coast sales manager Craig Ross has moved from the supplier's CA to NJ office and Robert Bromberg was promoted to VP of East Coast operations.

Sunderland of Scotland (asi/90145) hired Steve Weiss to represent the Wisconsin market, Mitch Wise, southern CA and AZ, and Terry Kuhns will service northern CA.

The Vernon Company (asi/351700) hired Mark Gammon as Central region manager.

Exclusively from Corporate Key - asi/63053
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Visit our website to see more great products!

For other new and creative products,
visit the Product Central section on ASICentral.com.

The following are the dates and locations for The ASI Show in 2008:
Las Vegas: April 9-11
New York: May 6-8
Chicago: July 22-24

Plus, don't miss the ASI Advantages Roadshow, the industry's #1 traveling show. Visit www.advantagesroadshow.com for the complete 18-week schedule!