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Soros puts $10M in Bluefly
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July 28, 1999: 3:06 p.m. ET
Billionaire financier lines up behind Net vendor of fashion and accessories
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NEW YORK (CNNfn) - Bluefly Inc. landed a big investor fish on Wednesday, announcing billionaire financier George Soros will lead an investors' group taking a $10 million stake in the online haberdasher.
Shares of New York-based Bluefly (BFLY), a vendor of brand-name clothing via the Internet, shot up 3, or 30 percent, to 13-1/8 on the announcement.
The investment fund Soros Private Equity Partners leads a investor group that will obtain a 19.5 percent voting share of Bluefly through the investment.
"We believe Bluefly has an unusual market opportunity to build a large scale e-commerce business," said Neal Moszkowski, a Soros partner who will sit on Bluefly's board as part of the accord.
A spokesman for the fund declined comment on its investment portfolio, or whether Mr. Soros has been dabbling elsewhere in Net stocks recently.
The Soros-led group will buy preferred stock in Bluefly that is convertible into common stock at a rate of $10.50 per share. Alongside Soros Partners in the investment is the technology investment fund Pilot Capital Corp.
Bluefly, which has struck alliances with some premier names of the Internet including America Online, Yahoo! and Microsoft, went public under the name Pivot Rules, a golf shirt vendor, in 1997.
In the last twelve months, Bluefly has lost $1.1 million on revenues of $180,000.
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Bluefly.com
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