CloseOutNow.com teams with USA Factory Outlets to extend distribution to offline channel

CloseOutNow.com brings together buyers and sellers of unsold branded and non-branded inventories of fashion merchandise through an online auction. The B2B site posts inventory listings of apparel, footwear and accessories making them available for bid by CloseOutNow.com customers. U.S. Factory Outlets, which features bargains and closeouts of all types of merchandise, will act as an additional distribution platform for suppliers.

``While CloseOutNow.com provides an alternative to the traditional means of distributing excess inventory, there will be some suppliers who may choose to sell their merchandise at retail rather than at less than cost,'' said Steven Lubinski, CEO of CloseOutNow.com. ``To assist those suppliers, we are pleased to offer another option - distribution through U.S. Factory Outlet stores throughout the United States.''

``USFO's alliance with CloseOutNow.com is a great opportunity for us to expand our offerings. With ties to manufacturers and retailers around the world, the site provides us with a greatly expanded international sourcing base,'' said Fred Raiff, USFO chairman and CEO. ``Our involvement will automatically increase the variety of fashion merchandise available in our stores as well as provide CloseOutNow.com's customers the option to distribute their merchandise through our retail stores. Basically, this means that the supplier now has a chain of retail outlet stores to sell their products. By using USFO, the supplier will be getting a bigger return on their merchandise. The main difference is that instead of being paid a lower price up front, they will receive a larger return over a period of time.''

The B2B auction site will form the CloseOutNow Management Company to implement this alliance with U.S. Factory Outlets, whose stores are located throughout the United States. USFO will sell the inventory on a consignment basis, realizing a percentage of retail value for merchandise sold. Suppliers will also receive a percentage with CloseOutNow Management Company obtaining a portion of the retail value of goods sold for its part in channeling suppliers' excess inventories to USFO.

07/17/00 Source: Closeoutnow.com