Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
Outpost.com’s sales fell to $63.7 million in Q1 from $65 million a year ago.
Net sales for the first quarter ended May 31 at Kent, CT-based Cyberian Outpost, Inc.’s Outpost.com totaled $63.7 million, a decrease of $1.3 million (2%) from $65 million in Q1 2000. The company reported a net loss, excluding charges for impairment of goodwill and restructuring charges, of $10.2 million for the quarter vs. a net loss of $7.4 million a year ago. Including charges for impairment of goodwill and restructuring charges, the quarterly net loss was $27.4 million. Gross margin for the quarter was 14% vs. 13.4% during Q1 2000.
During the quarter, Outpost added 106,000 new customers bringing its total customer base to over 1.4 million. The company says 56% of quarterly product sales came from existing customers.
On April 13, the company implemented a restructuring plan and incurred a restructuring charge of $2.3 million. In connection with the restructuring plan, the company has re-focused its business on its core business-to-consumer sector and has significantly curtailed its business-to-business operations,
As a result, the company recorded an impairment charge of $14.9 million for the unamortized goodwill associated with the purchase of OutpostPro.com Inc. which is included in the $27.4 million loss for the quarter.
In May, Cyberian Outpost agreed to be acquired by PC Connection Inc.