Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
In a bid to return to profitability, SkyMall says it is laying off 15% of its staff . The company says the jobs, which include "certain technology positions," were no longer essential, given the maturity of its Web site and infrastructure. Its redesigned site was unveiled in February. "Prior to 1999, SkyMall had been profitable for four years,'' says Robert M. Worsley, SkyMall's founder and CEO. "In 1999, we undertook significant discretionary investment spending in connection with our web development and e-commerce efforts. We are pleased that these initiatives have been largely completed and are now planning to return the company to profitability by the fourth quarter of 2000. Unlike other dot-com retailers who will probably never make money, SkyMall has a history of profitability, a well-known brand, strong margins and a profitable customer acquisition model that leverages its powerful off-line channels.''