San Francisco-based retailer Sharper Image (Nasdaq: SHRP) filed for Chapter 11 bankruptcy protection Feb. 20 and announced that it would be closing nearly half of its 184 stores. The Los Gatos store, at 105 N. Santa Cruz Ave., is one of only 14 Sharper Image stores that is not in a mall or other retail center. The Observer has learned that the Los Gatos store is on the list to be closed.
"There has already been interest in leasing the space," said Town of Los Gatos Economic Vitality Manager Danielle Surdin. The roughly 5000 square-foot building was briefly the bright purple Virtual Gallery, but long-time Los Gatans remember it as Wolf Computer, one of the first high-tech retailers anywhere.
Sharper Image, 105 N. Santa Cruz Ave.
"It's too bad," said building owner Ed Stahl. He has not been told he is losing his tenant officially, but he is aware of the bankruptcy filing. "Sharper Image has been a great tenant and a boon and help for Los Gatos. I think they fit the Los Gatos profile amazingly well."
Sharper Image founder Richard Thalheimer left the company in Sept., 2006, and the firm has lost money for 3 consecutive years. The Los Gatos store opened in April, 2002, and it is not known when it will close. Store Manager An Pham could not be reached at press time.
"Our vacancy rates [downtown] are extraordinarily low," Economic Vitality Manager Surdin told the Los Gatos town council last Monday. "That is driven by our gross sales per square foot. In the Bay Area, we have one of the most competitive downtowns." Her report, "Los Gatos Commercial Snapshot," listed only 4 vacancies downtown (2 on Royce St., 1 on W. Main, and 1 on N. Santa Cruz).
In other business news, electric car retailer Green Vehicles, 33 N. Santa Cruz, is moving to San Jose in order to add car customization services. Owner Ehab Youssef told Surdin that he did not feel the town would grant a conditional use permit for manufacturing.
Attorneys Ehab and Heidi Youssef opened the unusual showroom just last year.
Green Vehicles announces its move to San Jose
"Los Gatos is my home and where my kids go to school," Ehab wrote in an e-mail. "I will make sure in the very near future that electric vehicles are readily available in Los Gatos. I will most likely attempt to make the cars available through an auto retailer in Los Gatos." The Youssef's green vehicles were part of the Akeena Solar grand opening, looking right at home in the former Swanson Ford showroom.
Elsewhere, work continues on Modern Mini, Shoe Fetish, and Smokey Market, all expected to open in the next few months.
I am so sad to see these two shops close. I thought Sharper Image was doing good business as well as the Green Cars. I hope to see a Crate an Barrel store open here in town or some other retail store to fill the space.
It is always sad when a business leaves and it is always a hardship on the landlord. Ed Stahl, the owner of the Sharper Image building, is one of those rare landlords who strives to become a friend of his tenants and he certainly succeeded in making me a life time friend while I was his tenant! Because Ed is such a jewel of a landlord, he should not have a lot of trouble finding a good suitable tenant. And if anyone has any doubts about the positive impact Ed has on his tenants' business, I will be happy to fill in the details.
(Edited 02/25/08 5:45 pm)
Good ridence Green Car store. The town bent over backwards to give them a varience to do business in the Central Business District even though Town Policy prohits this type of operation. Council was running scared when they approved this with all the empty store fronts last year and made a number of incorrect decisions in hopes to re-vitalize the downtown. WRONG!!
Simular incorrect decisions were made in allowing the new Italian restaurant to expand into retail space adjacent to Apple Computers store. This too required a varience as it was also a prohibited usage in the Central Bussiness District. WRONG!!
This Italian restaurant has been closed since last November. It seems that getting this extra space was so that they could sell the restaurant easier with more square footage, instead of as they claimed, to be able to keep their doors open. What doops we are at Town Hall.
I see that the wine tasting room by Los Gatos Roasting Company, which also needed a varience is closed as well, temporarily, or at least they say. Los Gatos has lost it's luster as an upper end shopping district. We can not support these types of operations. Now we have Sharper Image closing and now that the Gap is doing so bad financially maybe they will close shop as well. If these high trafic operations continue to close I hope our Town Council will reverse thier stand on letting anyone in town just to keep the vacancy rate down. Do you think they learned a lessonk? I doubt it too. Thier recent decisions have cost us dearly with the loss of small business and parking due to the overintesifcation of our down town. I agree with Don Wolf that Ed Stahl is sensitive to bring in the right tenant. His decision to rent to a "corner drug store" was right on. Certinly he should not solicit Crate and Barrel for the Sharper Image location.
jeez, why not open another nail salon? seriously why is downtown flailing - just look at why santana row gets so much traffic - because they have nice restaurants (both high end and quick) and is a fun place to hang out. how many nail salons at santana row? zero. until the town wakes up and brings in businesses that will attract people the town will wither away. those who don't want the town to bring in more traffic live in a dream world - the local economy won't thrive without it. stop worrying about how many stores a chain has and think about will it draw people to the town.....
I can't stand the store Shoe Fetish. The sales people have no idea what they are doing! I have decided to just shop for my shoes at Nordstrom instead. What has happened to customer service?
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