Dive Brief:
- Xhibit Corp., parent company behind in-flight catalog SkyMall, filed for Chapter 11 bankruptcy protection Thursday.
- SkyMall's revenues took a startling nosedive in the past year, from $33.7 million in 2013 to $15.8 million for the nine months ending in September 2014.
- Xhibit says it is currently searching for a buyer for the business, with an auction to be held on or around March 24.
Dive Insight:
Addressing the company's filing in court papers, CEO Scott Wiley cited the changing habits of airline passengers as a reason for SkyMall's dramatic profit decline.
As more airlines offer WiFi on flights and allow passengers to keep their smartphones and tablets powered on, customers now have multiple options besides SkyMall to shop in the air.
But what's interesting is that the company didn't pursue any e-commerce options to try to attract in-flight passengers on their mobile devices. As J.C. Penney resurrects its "Big Book" catalog, citing data that it helps drive web sales, retailers are realizing that the medium can work to attract customers—when combined with other channels.
