Apparel and accessories retailer Alloy Inc. is spinning off its merchandising operations to shareholders. Alloy’s revenue currently come from a mix of media, marketing services, direct marketing and retailing through web sites, catalogs and stores. Alloy is the 94th largest online retailer in Internet Retailer’s Top 400 Guide to Retail Web Sites, with sales of $62 million in 2004, as estimated by Internet Retailer.
The company expects the transaction to be completed by the fourth quarter. After the spin off, the company plans to sell additional shares to raise $20 million to be used primarily for additions to the new company’s retail store base and for general working capital.
The spun-off company will include the dELiA*s, Alloy and CCS brands and will sell apparel, accessories, footwear, room furnishings and action sports equipment directly to the youth market through catalogs, web sites and retail stores. The new company has yet to be named. Rob Bernard, Alloy's Retail and Direct Consumer division CEO, will become CEO of the new company.
After the spin-off Alloy will consist of its media and marketing services businesses which will continue to provide services under the Alloy Media + Marketing banner. Matt Diamond will continue to serve as CEO of Alloy.
Back...
