Scripps puts Shop At Home Network up for sale

After evaluating various strategic alternatives for web and TV retailer Shop At Home Network, parent E.W. Scripps Co. has put the unit up for sale.

Scripps began exploring strategic alternatives for Shop At Home Network after the business unit posted a net loss of $28 million in 2005, which included a net loss of $10.4 million in the fourth quarter alone. After exploring various options, Scripps has retained New York investment banking firm Allen & Co. to assist with the sale. Terms of the sale aren’t being disclosed and Scripps isn’t saying if it’s currently reviewing any offers.

During the first quarter of 2006 Shop At Home Network, No. 212 in the Internet Retailer Top 400 Guide to Retail Web Sites, posted decreases in both sales and net income. For Q1 2006, Shop At Home Network recorded a net loss of $10 million on sales of $84.4 million compared with a net loss of $5.4 million on sales of $102.1 million in Q1 2005. While the Internet side of the business was growing, Scripps says Shop At Home Network was unable to secure consistently strong channel positions on cable television systems across the country.

As a result, Scripps now is pursing other growth opportunities with its recent acquisition of comparison shopping sites Shopzilla and uSwitch. The company isn’t entirely exiting web retailing. A Scripps spokesman says Scripps is looking at new e-commerce arrangements for its highly viewed lifestyle cable channels such as Food Network, Home and Garden Television, and DIY Network.

Shop At Home Network had e-commerce revenue of $57.1 million in 2005, up 30% from Internet Retailer estimated sales of $44 million in 2004. Scripps says Shop At Home Network has about $260 million in total assets.