Overstock.com Acquires Gear.com, Other Assets

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.


The inventory will be added to Overstock.com’s sporting goods department. It
includes
3,000 SKUs of different sporting goods equipment, including name brands such
as The North Face, Timberland, Pearl Izumi, Champion and Puma, all of which
will be available on Overstock.com by the end of October.


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.

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