RealTime IT News

Styleclick in Major Reorganization

Los Angeles-based e-commerce services provider Styleclick Inc. implemented a major reorganization that includes the departure of its CEO and the naming of a replacement, the acquisition of the MVP.com technology platform and a new $15 million line of credit.

The company's co-founder, Maurizio Vecchione, resigned from his position as CEO of Styleclick and from the board after 13 years with the company that he helped to launch as Modacad Inc. in 1988.

The new CEO is Lisa Brown, currently president and CEO of USA Electronic Commerce Solutions, a USA Networks company. Robert Halper, currently executive vice president for operations and finance of ECS, was named president and COO of Styleclick, replacing Ed Zinser, who also resigned.

Both Brown and Halper will also continue in their positions at ECS.

The revolving credit line is from Styleclick's largest shareholder, majority-owner USA Networks Inc. .

Styleclick also revised the outlook for its financial performance for the year 2001, saying it now expects revenues of $14 million and an EBITDA (earnings before interest, taxes, depreciation and amortization) loss, excluding goodwill, of $18 million.

Financial terms of the MVP.com technology platform were not disclosed.

Styleclick said that the addition of MVP.com's platform will help to ensure that Styleclick's services can grow with the developing needs of its customers, including the business funneled to Styleclick by USA Electronic Commerce Solutions such as stores for CBS SportsLine, NASCAR.com and the PGA Tour.

Ian Drury, former CTO of MVP.com and Brent Hill, former vice president of business development of MVP.com, the technologists responsible for creating the software being acquired, will be joining the senior staff of Styleclick as executive vice presidents.

MVP.com itself, the sporting goods and outdoors e-tailer that had as board members sports legends John Elway, Michael Jordan and Wayne Gretsky, is out of business, a spokeswoman for Styleclick told internetnews.com.

"MVP as a company is out of business," said Styleclick spokeswoman Bonnie Poindexter. "CBS Sportsline has taken the rights to the MVP.com domain name."

MVP.com had announced major staff cuts and office closings last December.

Styleclick has a complicated history. It was founded as Modacad, a company focused on developing 360-degree viewing software for e-tailers. It later created a fashion e-commerce site called styleclick.com. Now, after the acquisition by USAi, Styleclick "has slowly transitioned from a B2C operation, going back to its core strength of providing e-commerce enabling technology," Poindexter said.

The target market is existing brands that have an online presence and want to add e-commerce, or brick and mortar companies that want to get into e-commerce.

Styleclick's offerings include Web design, development and hosting, product imaging, online sales and merchandising technologies, inventory management and integrated back-end fulfillment and customer care.

The company's stock was up 34 cents at mid-day to $1.43; its 52-week high is $13.18.