SACKETS HARBOR, N.Y., April 19, 2010 (GLOBE NEWSWIRE) -- Hackett's Stores, Inc. (Pink Sheets:HCKI), a holding of Seaway Valley Capital Corporation (Pink Sheets:SEVA), is pleased to announce that it has agreed in principal with ACG Consulting to raise $7 million in new capital to fund is wholly owned subsidiary WiseBuys Stores, Inc. and a separate software development company for the purposes of developing a new discount retail concept wherein all merchandise is placed in each new store on consignment, which is referred to as "pay-at-scan" as the merchandise is paid for by the retailer as it is sold. The new business, which will utilize the WiseBuys name and entity, will partner directly with manufacturers both in the United States and abroad and will be chosen to provide the discounted or obsolete merchandise to each WiseBuys outlet where it can be displayed and sold. A separate entity will be formed to develop the specialized software that will enable each manufacturing partner to directly monitor its inventory, sales, and cash proceeds in a secured network environment.
WiseBuys intends to open outlets only in larger population centers initially in the Northeast United States and in spaces greater than 50,000 square feet. WiseBuys will only open new stores where realistic target annual sales per square foot will be at $250 or greater.
WiseBuys President and CEO Herbert Becker stated, "We envision these stores offering an ever-changing merchandise mix at deeply discounted prices. This is a tremendously exciting opportunity to develop something both novel and needed, as merchandise manufacturers are becoming increasingly frustrated by the consolidating landscape of the retail industry in the United States." Mr. Becker continued, "So here we will create a transparent outlet whereby merchandise can be routed directly to consumers without a middleman and at terms and pricing manufacturers can better influence. The opportunity for this type of company is significant and we are actually considering a name-change at the parent company to reflect the WiseBuys-related opportunity."
The term sheet executed with ACG Consulting also called for a $3 million raise for wholly owned subsidiary Patrick Hackett Hardware Company.
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