Overstock.com Acquires Gear.com, Other Assets
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Online discount and clearance sale e-tailer Overstock.com acquired Gear.com, a close-out sporting goods e-tailer, and also spent $2.5 million to purchase the remaining inventory from defunct sites Miadora.com and Jewelry.com.
Overstock.com said the jewelry site inventories are valued at more than $12 million retail.
"By absorbing these inventories and combining our traffic, we are primed to triple our sales during the upcoming holiday season," said Patrick Byrne, CEO of Overstock.com. "We anticipate a minimum of $10 million per month in sales by the end of this year"
In return for an undisclosed amount of stock, Overstock.com will obtain all of The Gear.com Corp. stock, and with that, its inventory valued at an estimated $14 million retail.
Gear.com has sold name-brand, close-out sporting goods from more than 550 manufacturers at prices 25 percent to 75 percent below retail. Its 45 employees will retain their current positions and will become part of the Overstock.com team. Over time, Gear.com will go away and basically turn into Overstock.com's Sporting Goods Department, said a spokesperson for Overstock.
"This partnership is extremely powerful because it's fusing two powerhouses for liquidation into one site, reinforcing Overstock's dominance as the market leader in this space," said Nick Hanaour, Gear.com's board chairman.
By purchasing the inventories of now-defunct online jewelers Miadora.com and Jewelry.com, Overstock.com said it acquired more than 1,500 SKUs of high-end jewelry, including diamond earrings, bracelets and rings; gold and silver jewelry from top designers; and watches from prestigious brands such as Rolex, TAG Heuer, Breitling, Cartier and Bulgari. Both inventories are being relocated to Overstock.com's new warehouse in Salt Lake City, and will be available on its Web site by Nov. 1, the company said.