Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
Third quarter web sales at IAC/Interactive Corp. leaped 130% to $149.5 million from $65 million from the prior year due in large part to the acquisition of Cornerstone Brands. Overall the web accounts for 23% of all sales compared to 15% in Q3 2004.
IAC/InterActiveCorp is seeing the e-commerce effect of its acquisition of Cornerstone Brands in March. In IAC’s recently released third quarter earnings, e-commerce sales jumped 130% to $149.5 million, compared with web sales of $65 million for Q3 2004.
The increase can be attributed to steady growth at HSN.com, the e-commerce arm of Home Shopping Network, and the integration of Cornerstone Brands, which operates BallardDesigns.com, Frontgate.com, GarnetHill.com, SmithandNoble.com, TheTerritoryAhead.com and TravelSmith.com, into IAC’s overall Internet business.
For the third quarter, the web represented 23% of IAC’s total sales of $664.3 million, compared to the third quarter of 2004 when e-commerce made up 15% of total sales of $437.1 million. “Our retailing segment benefited from the inclusion of Cornerstone Brands and improved top-line results at HSN,” IAC says. “Online demand was strong.” Beginning in 2006, IAC will begin cross selling merchandise from Cornerstone Brands on HSN.com and include more Home Shopping Channel products on various Cornerstone sites, the company says.
IAC is also conducting an executive search to replace Frank Han, former general manager of HSN.com, who is now president and CEO of local shopping service Cairo.com. “HSN.com has an excellent senior leadership team in place that will report directly into Marty Nealon while we evaluate both internal and external candidates,” a spokesman says. Marty Nealon is president of HSN-U.S. HSN.com is No. 31 in the Top 400 Guide to Retail Web Sites