NEW YORK — Online off-pricer Bluefly Inc. has gotten another boost from George Soros.
This story first appeared in the June 3, 2002 issue of WWD. Subscribe Today.
A group led by the financier agreed on May 24 to purchase 1.2 million of the firm’s common stock as well as warrants for $1.9 million.
According to a filing with the Securities and Exchange Commission Friday, the group can exercise warrants to buy 297,000 shares for $37,000. The warrants are exercisable at $1.88 a share.
Soros now holds 19.2 million shares of the company’s common stock, giving him a 67.2 percent stake.
In an April 3 filing, the group indicated it held 17.7 million shares, or a 78.2 percent stake.
Shares of the firm, based here, jumped 29 cents, or 20 percent, to close at $1.74 on the Nasdaq Friday. Over the last 52 weeks, Bluefly’s stock has traded as high as $2.65 and as low as 51 cents.
In the first quarter ended March 31, the firm boosted sales and cut costs, but came away with losses of $1.7 million, or 18 cents a diluted share. Still, the results were a marked improvement over year-ago losses of $18.1 million, or $3.57. Before accounting for all common stock the net loss was $1.1 million compared with $17 million in the year-ago quarter. Sales for the quarter jumped 64.6 percent to $7.7 million.
During the period Bluefly also entered into a standby commitment agreement whereby its largest investor, Soros Private Equity Partners, agreed to come up with an additional $4 million in capital this year if needed. In April 2001, the firm cemented a deal with Soros that raised approximately $10 million through the issuance of common stock and converted about $31 million of its debt and redeemable preferred equity into permanent equity.”