MVP.com Restructures

MVP.com, the sporting goods and outdoors e-tailer that has as board members
sports legends John Elway, Michael Jordan and Wayne Gretsky, said it is
closing down two offices and cutting 79 jobs, including 20 at its Chicago
headquarters.


Being shuttered are offices in Boulder, CO (39 people) and Austin, TX (20
people). The privately-held company said all operations in Chicago are being
consolidated.


The Austin and Boulder operations were acquired through e-commerce business
purchases that MVP.com made in 2000, the company said, adding that “This
move
will help lower the company’s cost structure to operate more effectively and
efficiently in a challenging business environment.”


Last October, the company
missed a $5 million payment
— due Oct. 1 — to backer CBS
Sportsline.com, and was reportedly turning to Sportsline and other partners
for additional funding.


On Nov. 20, SportsLine.com Inc., publisher of CBS
SportsLine.com,
terminated its agreement
with MVP.com, saying the sports e-commerce
company was “overdue” on its scheduled payment for the fourth quarter.


A spokeswoman for MVP.com said at the time that renegotiations of the portal
deal were unsuccessful, but “sales have been steadily increasing since the
summer.” The spokeswoman said the bulk of the company’s revenues come from
its flagship site and other venues.


Founded last year, MVP.com, which “helps individuals achieve their personal
best in sports and outdoor activities,” markets sporting goods merchandise
and apparel.


In its announcement on the job cuts, the company said that MVP.com customers
“will not be affected by the changes announced today. The site continues to
offer customers a strong assortment of sporting goods and outdoor gear and
apparel, including 40,000 products from more than 400 brands.”

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