Grocery Outlet Buys Another Inventory From Dot.com Gone Bust
Closeout Specialist Procures Over $4.0m in Inventory From Wine.com/Virtual Vineyards
BERKELEY, Calif--Dec. 3, 2001--They`ve done it again! Just on the heels of finishing off the largest single inventory liquidation sale of an online grocery delivery business (Webvan), Grocery Outlet Inc. has successfully purchased yet another failed online retailer`s inventory. Former online wine delivery retailer Wine.com (the corporation (1)), ceased operations on April 27th, 2001, and subsequently filed for Chapter 7 bankruptcy protection on May 4th, 2001. Their major source of financing and principal creditor, Sand Hill Capital foreclosed on their assets when payment was not made. This huge wine liquidation consists of some of the Wine.com`s finest and most unique product. Included in the liquidation are Chardonnays from Chile & California, older vintage Burgundies & Bordeaux, and Rieslings from Germany. Grocery Outlet has already begun moving this outstanding selection to its network of California stores.
Wine.com (the corporation) had attempted since 1999 to build a market for home delivery of fine wines. High costs per transaction, complexities of providing comprehensive consumer education about fine wine and the inability of the Wine.com site to turn browsers into buyers all contributed to its demise. "In an unprecedented year of dot.com failures, this is yet another example of a wonderful idea put to rest by market conditions, logistical issues, and public wariness of online delivery." says Grocery Outlet CEO, James Patitucci. "However, our California customers will now be the lucky benefactors of this once-in-a-lifetime opportunity, and we are currently gearing up to serve their needs."
Over its nearly 30 years in business, customers have come to rely on Grocery Outlet to provide quality products at incredible prices. 109 independently operated Grocery Outlet stores in 8 Western states offer fantastic deals on a variety of items including grocery, frozen foods, deli/dairy, beer & wine, housewares, health and beauty products, and much more. Grocery Outlet finds the deals by scouring the nation and world for amazing one time buys resulting from excess production, packaging changes, warehouse overstocks and special opportunities such as this one. Because of this philosophy, selection in the stores changes daily with every new shipment. Brand names for less is the name of the game at Grocery Outlet, and smart shoppers reap the rewards -- savings up to 40% over regular store prices. "In these challenging and unusual times, customers are constantly searching for that extra bargain to help preserve family income," said Mr. Patitucci. "Our heritage has been built on selling great products at great prices," he continued. "We are delighted to offer this treasure of fine wines to our customers in California, and know that it is a welcome addition to our stores` offering this holiday season."
(1) eVineyard purchased wine.com`s domain name, often referred to as
the URL, along with related trademarks, website, content,
software, intellectual property and goodwill from Sand Hill
Capital. They currently operate a website called wine.com BY
eVINEYARD.
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CONTACT: Grocery Outlet
Jon Wylie, 510/704-2816
Fax: 510/845-7869
jwylie@cfgo.com
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