Helio on Its Last Legs?

Helio, the high flyer of 5 years ago looks to be on life support now. A soft economy has taken the glitz out of high priced bling.

Just a month and a half after Virgin Mobile USA Inc.’s announcement to acquire Helio L.L.C., all but one of Helio’s five retail stores have already closed. The New York location remains open, for now, while stores in San Diego, Santa Monica and Palo Alto, Calif., and Denver have closed, confirmed Helio spokesperson Rick Heineman.

The stores closed within the past month or so. As for the New York store, Heineman said nothing is definite.

“We do not have a time table other than for it to be open right now,” Heineman said. “When the deal closes, [it’s] up to Virgin Mobile.”

As for the employees at the shuttered stores, Heineman said some were let go and some stayed on to work with Virgin Mobile USA. The move aligns with Virgin Mobile USA’s plan to cut down Helio’s staff from 570 to 200 employees.

Bling is out, return on investment is in.

Linky.