SkyMall Could Be Saved by Potential Bid (Report)
The airline catalog, once a mainstay of seat-back pockets, filed for Chapter 11 bankruptcy on Jan. 23.
News came late last week that SkyMall, the airline catalog that could always be found in your seat-back pocket, would be filing for bankruptcy, along with its parent company Xhibit. Now, CNBC reports that ScotteVest, a tech-friendly apparel manufacturer based out of Sun Valley, Idaho, intends to bid for SkyMall's remaining assets.
ScotteVest CEO Scott Jordan tells CNBC that he thinks the catalog ran into trouble when it failed to adapt to the needs of Internet shoppers, saying, "SkyMall was doomed to fail by its business model." He then optimistically stated: "But I know how to fix it."
SkyMall blamed the increased accessibility of the Internet on commercial airplanes for adding online competition that, ultimately, negatively impacted catalog sales. Jordan says he will focus on e-commerce, something that he believes SkyMall failed to do in the past.
ScotteVest is known for products such as men's travel vests, which can simultaneously hold your iPhone, iPad, car keys, sunglasses and whatever else you can fit in its 26 utility pockets. Steve Wozniak, Apple's co-founder, sits on the company's board of directors.
When SkyMall's initial bankruptcy announcement came, THR learned that United Airlines and American Airlines already had started pulling the catalog from their planes. But a banner on the SkyMall website currently reads, "There are changes in the air, but we're still here!"
Xhibit is looking to hold an auction of SkyMall's assets sometime in March. So, if you had your eye on that Night Glow toilet seat, there may still be hope!