NEW YORK, August 7, 2000 (PRIMEZONE) -- iParty Corp. (AMEX:IPT), owners and operators of iParty.com, a premier destination for party goods and party planning, today announced its intention to acquire 33 retail stores from The Big Party Corporation. Under terms of the deal, iParty will acquire the inventory, fixed assets and the leases of 33 retail stores located in Massachusetts, Connecticut, New Hampshire, Rhode Island, Florida and Maine. The Big Party currently operates 54 retail stores located throughout the eastern United States and realized total sales of approximately $69 million in 1999. The Big Party filed for bankruptcy protection earlier this year. The acquisition of the 33 stores is anticipated to close later this month following bankruptcy court approval, which is to be rendered on August 8, 2000 or shortly thereafter. Specific financial terms of the pending acquisition were not disclosed.
Sal Perisano, Chief Executive Officer of iParty Corp., commented, "As co-founder, former Chief Executive Officer and Director of The Big Party, I believe iParty.com is in a unique position to leverage its online experience with these brick-and-mortar locations. Our intended acquisition of 33 retail stores from The Big Party will allow iParty to operate as a complete multi-channel retail provider in our space. The cross-promotional activities of our online store, combined with the convenience of our catalog, will provide iParty.com customers with a broad range of product offerings and services. We further believe that these brick-and-mortar locations will be significant traffic drivers for both theiParty.com website and our offline catalog business. Lastly, the acquisition will provide iParty with a solid revenue platform, improve iParty's ability to consolidate other direct marketing companies within the industry, and improve iParty's ability to leverage its strategic alliances."
Headquartered in New York City, iParty.com, owned and operated by iParty Corp. (AMEX:IPT), is a premier online destination and offline national catalog for party givers that makes throwing a successful event both stress-free and fun. From over 11,000 party supplies and costumes to an online party magazine and party related content, iParty.com offers consumers a sophisticated yet fun and easy-to-navigate resource with a definitive assortment of products to customize any party, including birthday bashes, Easter get-togethers, graduation parties, summer barbecues, and, of course, Halloween. iParty.com offers reliable, time-tested knowledge of party-perfect trends, superior customer service and distribution to ensure comprehensive merchandise selections for every occasion. Please visit our site at www.iparty.com.
Certain information included in this news release (as well as information included in oral statements or other written statements made or to be made by iParty.com) contains statements that are forward-looking, such as statements relating to anticipated future revenues of the company and the success of current product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of iParty Corp.