Retailer SkyMall files for bankruptcy

SkyMall, the company that produces in-flight catalogs located on nearly every domestic flight, filed for Chapter 11 bankruptcy protection on Thursday, after struggles to reach passengers who were turning to smartphones and tablets during flights.

SkyMall LLC, in papers filed with the U.S. Bankruptcy Court in Phoenix, stated that it had evaluated the company’s alternatives and determined that the filing was in the best interests of the company and its creditors.

Delta Airlines, American Airlines and U.S. Airways are included in the company’s list of creditors holding the 20 largest unsecured claims.

In the petition, SkyMall estimated its assets range from $1 million to $10 million and that its liabilities range from $10 million to $50 million.

The in-flight catalog reaches an estimated 650 million travelers each year. In 2013, SkyMall lost $3.2 million from May to September 2013, as reported by its parent company, Xhibit Corp., an Arizona marketing firm.

SkyMall has been struggling to deal with the increased use of mobile digital devices on planes, which provide potential customers with other distractions besides its catalog. In 2013, the Federal Aviation Administration eased restrictions on the use of portable electronic devices, allowing passengers to keep smartphones and tablets powered up during takeoffs and landings. Plus, most passengers are able to access wireless Internet.