SkyMall files for bankruptcy

Xhibit, the parent company of the in-flight shopping catalog SkyMall, has filed for bankruptcy in Phoenix, citing a funding crisis. The company will seek a court-supervised sale of its assets.

"Historically, the SkyMall catalog was the sole in-flight option for potential purchasers of products to review while traveling," Xhibit CFO Scott Wiley wrote in the filing, according to USA Today. "With the increased use of electronic devices on planes, fewer people browsed the SkyMall in-flight catalog."

Xhibit hopes to sell its main assets, including the SkyMall retail business, in April and then complete an "orderly wind-down" of its affairs, reported Reuters. The company also announced it suspended its catalog operations on Jan. 16, laying off 47 of its 150 employees.

Xhibit faces $12 million worth of creditor claims. In 2013, revenue totaled $33.7 million and dropped to $15.8 million in the first nine months of 2014.

Xhibit joins other retailers filing for bankruptcy at the start of 2014, including teen chain Wet Seal (NASDAQ:WTSL) and RadioShack (NYSE:RSH), which has not yet filed, but is on the brink. Other retailers that have been forced to close stores at the start of 2015 include Target Canada (NYSE:TGT) and JCPenney (NYSE:JCP).

For more:
-See this USA Today article
-See this Reuters article

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