This story first appeared in the January 13, 2004 issue of WWD. Subscribe Today.
- MO’ BLUE MONEY: Off-price Internet retailer Bluefly Inc. raised $5 million in gross proceeds from a group of funds led by Redwood Grove Capital Management LLC, a California-based private equity firm. Ken Seiff, Bluefly chief executive, said the money would be used to grow the business and strengthen the brand through a variety of means including acquiring more customers, improving the merchandise, and filling two new executive positions: a vice president of technology and a chief marketing officer. Under terms of the deal, Bluefly issued 1.5 shares of common stock at $3.24 per share, which was 90 percent of the trailing five-day average of Bluefly’s volume-weighted stock price as of Dec. 29, 2003, the date that a preliminary agreement was reached. Bluefly also issued the new investors warrants to purchase 385,803 shares of common stock at any time during the next five years at an exercise price equal to $3.96 a share. Assuming all outstanding equity securities, stock options and warrants of the company were converted, the common stock and warrants issued in this deal would equal approximately 2.8 percent of Bluefly’s?equity. To date, the Soros Private Equity Partner has invested about $55 million in the online retailer.