LOS ANGELES, May 8, 2012 /PRNewswire/ -- LuxeYard Inc., (OTCBB: LUXR), the fast-growing boutique luxury flash sale site, announced today that it signed an agreement to acquire LeatherGroups.com, the online division of Solana Beach, California furniture retailer homeLOFT. Terms of the deal were not disclosed.
The transaction was led by LuxeYard CEO Braden Richter and coincides with the creation of an acquisitions team, which will be based in LuxeYard's New York office. The company is actively pursuing several other acquisitions as part of its effort to consolidate the flash sale category and to reinvent the future of social and mobile ecommerce with its Concierge Buying and Group Buy technologies.
LeatherGroups.com was created by LuxeYard CTO Jerry Wilkerson in 2002 and the company has since shipped thousands of orders to every state in the U.S. The first site to specialize in sales of leather furniture on the Internet, LeatherGroups.com was designed to reduce excess inventory by offering clearance pricing on discontinued styles of leather sofas, loveseats, chairs and ottomans.
"LeatherGroups is the perfect complement to our core home furnishings flash sale business and demonstrates our ability to make the strategic acquisitions necessary to achieve our long-term objectives," said Tony Winders, executive vice president of revenue. "Not only does the acquisition add to our topline revenue, it extends the reach we can deliver to our suppliers and provides a wider selection of quality furniture at the best prices for our members."
LuxeYard will assume all assets of LeatherGroups.com, including its existing inventory, customer base and multiple domain names, including SofaGroups.com and PatioFurnitureGroups.com.
"Having helped build the quality team and technology at LuxeYard, I'm confident our vendor relationships and customer base are in great hands," said Wilkerson. "I'm proud to apply my ten-year investment in LeatherGroups.com to the bigger opportunity afforded by bringing these two innovative companies together."
LuxeYard is a members-only flash sale site for luxury home furnishings, decor and fashion that offers access to unique products sourced by a seasoned team of buyers at a fraction of retail prices. LuxeYard is the pioneer of Concierge Buying, which gives members the power to determine what items will be sold on the site, and Group Buy which allows them to lower the price by sharing sale items with friends. Along with its veteran retail, e-commerce and digital marketing management team, LuxeYard partners with celebrity Trendsetters and design and fashion industry insiders to deliver a curated buying experience from a unique point of view to its members. To join the LuxeYard community, visit www.LuxeYard.com.
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This press release contains forward-looking statements about our acquisition of LeatherGroups.com, which involve risks and uncertainties, and actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the factors included under the headings "Risk Factors" and "Cautionary Note Regarding Forward Looking Statements" on Form 8-K, filed with the Securities and Exchange Commission on November 15, 2011, a copy of which may be obtained by visiting the SEC's web site at www.sec.gov. LuxeYard's actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance.
You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this press release to conform these statements to actual results or to changes in our expectations.
Melissa Kubrin| Melissa@fingerprintcom.net
SOURCE LuxeYard, Inc.