The parent company of SkyMall has filed for Chapter 11 bankruptcy protection on Thursday as company officials cited increased use of electronic devices on planes for the drop in sales.
The Wall St. Journal, citing court documents, reported that SkyMall, its parent company Xhibit Corp., and other affiliates are seeking a court-supervised sale of company assets. The bankruptcy filing was in U.S. Bankruptcy Court in Phoenix.
According to the report, SkyMall had revenue of $33.7 million in 2013, but sales were $15.8 million through the first nine months of 2014.
Company CEO Scott Wiley also cited a crowded and intensely competitive retail environment for SkyMall’s drop in revenue.