Former Agenda LLC co-owner Seth Haber is tasked with turning around the bankrupt web retailer.
Bluefly Inc., a web retailer of designer fashions at outlet store prices, is laying off 32 staffers--34% of its workforce—and reducing marketing expenditures to achieve profitability in Q4 2002.
Bluefly Inc., an Internet retailer of designer fashions at outlet store prices, is laying off 32 staffers--34% of its workforce-and reducing marketing expenditures to achieve profitability in the fourth quarter of 2002, the company announced today. It expects to record a pre-tax charge of approximately $600,000 in the second quarter of 2001 in connection with the cutbacks.
As a result, based on current plans and assumptions, the company believes that it will reach profitability in the fourth quarter of 2002; its cash on hand will be sufficient to fund operations for the next 12 months; and less than $5 million of additional investment capital will be required to fund operations until it reaches profitability.
"The decision to reduce overhead and streamline our operations was not an easy one but it clearly was required if Bluefly is to become profitable before the end of 2002," said Ken Seiff, CEO. "Achieving profitability, while maintaining the value and quality Bluefly offers its customers and suppliers, is clearly the appropriate next step and we will continue to be supportive in this regard," said Neal Moszkowski, a partner at Soros Private Equity Partners.
The company also announced the addition of Josephine Esquivel to its Board of Directors. Esquivel is former senior apparel, textiles, footwear and luxury goods equity analyst with Morgan Stanley Dean Witter.