CyberShop Finishes Shopping, Starts Investing
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Sliding its business into the financial arena, online department store CyberShop.com Inc. closed its retail doors Thursday in order to form an Internet incubator to fund start-up Internet companies.
CyberShop (CYSP) ceased operations of its e-tailing sites CyberShop.com and electronics.net, and will sell the retail assets of these operations to raise capital for Grove Street Ventures Inc.
Grove Street, set to launch in the near future as a public company, will offer management resources, equipment, facilities and financial resources, including initial seed capital for newly-formed Internet firms. Its aim is to identify and invest in attractive early stage Internet companies and accelerate their development and product launches.
"After exploring a number of strategic alternatives, we saw the incredible opportunity in our new Internet incubator strategy and came to the conclusion that it is in the best interest of our shareholders to focus our business on this sector while retaining only our most profitable existing operations," said Jeffrey Tauber, chairman and chief executive officer of CyberShop.
The firm said that it will retain Tools for Living, the direct marketing division of CyberShop, as a separate division within the company.