Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
EDiets.com has raised $600,000 from executives and members of its board, the second such cash infusion this year. The retailer plans to use the money in part to fund a new advertising campaign for its home delivery service.
For the second time this year, eDiets.com Inc., an online retailer of diet plans and meal-delivery services, has raised new capital from company executives and members of its board of directors.
EDiets announced last week it had raised $600,000 from those individuals. Earlier this year, the company also reported a $500,000 infusion from management and board members. The company says it will use the $600,000 to fund growth, including the expansion of advertising relating to the relaunch of its service that delivers meals to customers’ homes.
“We continue to make meaningful progress on improving our overall operating performance and improving our cash flow,” says president and CEO Kevin McGrath. “I am confident that our strategic plan and promotional initiatives have positioned our business for long-term profitable growth.”
EDiets.com, No. 322 in the Internet Retailer Top 500 Guide, reported a 35% decrease in revenue to $10 million in the first half of 2009, but said its net loss also declined, down 34% to $5.5 million.