Bluefly CEO to get 5% of the proceeds if the e-retailer is sold
April 16, 2013 12:55 PM
Bluefly Inc. CEO Joseph Park has another incentive to get the highest sale price for the troubled e-retailer. He will get 5% of the sale price under a deal set by the company’s board of directors.
Earlier this month apparel retailer Bluefly, No. 179 in the Internet Retailer Top 500 guide with $96.3 million in 2011 sales, said it was evaluating strategic alternatives and that it needed additional capital to keep operating.
Bluefly has struggled in the past year as it sought to redefine itself and reverse losses. In January, it outlined a plan to recapture sales lost to flash-sale e-commerce sites. Bluefly’s strategy includes bolstering the connection between its two brands, Bluefly.com, and Belle & Clive, a flash-sale site it launched in 2011.
Bluefly ended 2011 with an $11.4 million loss. It expects that its 2012 loss will be between $24 million and $25 million.