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Its new owner, Development Capital Group, plans a mobile commerce push.
Web-only discount retailer Clearance.co has a new owner. Miami-based investment firm Development Capital Group Inc. has bought the one-year-old company for about $40 million in an all-stock transaction.
Clearance.co began selling such discounted products as bedding, electronics, jewelry, apparel and sporting goods in April 2013, according to a filing this week with the U.S. Securities and Exchange Commission. From April until December 31, 2013, the California-based company earned approximately $2.1 million in revenue. That includes $150,000 of sales on Cyber Monday, the e-commerce shopping event that took place on Nov. 25, the first Monday after Thanksgiving. Clearance.co employs nine full-time workers and six independent contractors.
The retailer’s founder and CEO Shahbod Rastegar takes over as CEO and board chairman of Development Capital Group. The investment firm’s previous CEO, Johnathan Lindsay has resigned from that job, but remains as director.
New ownership means new e-commerce ventures for Clearance.co.
“Moving Clearance.co under the Development Capital Group umbrella enables us to grow the brand while keeping true to our business,” says Rastegar. “Clearance.co is not currently optimized for mobile and we look forward to [Development Capital] President Joseph Ricard developing the mobile application in-house. We are also excited with new financing opportunities that were not available to us before.”
Clearance.co will embark on new digital marketing efforts that will enable it to target consumers with ads based on their web-browsing or e-mail histories, a practice commonly known as “retargeting,” Ricard adds.