iParty Corp. Reports Purchase of Two Party City Stores in Rhode Island
January 03 2008 - 9:00AM
Business Wire
iParty Corp. (AMEX: IPT - news), a party goods retailer that
operates 50 iParty retail stores, today reported that it has
completed the acquisition of two retail party goods stores in
Lincoln, Rhode Island and Warwick, Rhode Island, previously
operated as Party City franchise stores. The purchase price for the
two stores was $1,350,000, plus approximately $195,000 for
associated inventory, paid in cash to the selling group. The
Lincoln store is located in the Lincoln Mall, a regional shopping
center located on George Washington Highway in Lincoln, Rhode
Island. The Warwick store is located in the Cowessett Corners
Shopping Center on Quaker Lane in Warwick, Rhode Island. Both
locations were converted into iParty stores immediately following
the closing. The purchase agreement also provides that the sellers
and their affiliates will not compete with iParty in Rhode Island
for a period of five years, nor at locations proximate to iParty
stores in New England for a period of three years, subject to terms
and conditions set forth in the agreement. Sal Perisano, Chairman
and Chief Executive Officer of iParty Corp., commented, �Acquiring
these two stores is consistent with iParty�s plan to continue to
rationalize the New England market. The new Lincoln, RI location
will benefit from the closing of our nearby store in North
Providence. The new Warwick, RI location gives us an entry into a
strong market not previously served by iParty. Also, as previously
announced, we have closed our store in Auburn, MA at its lease
expiration and this will benefit nearby iParty stores in Central
Massachusetts. We believe these moves will improve our already
strong position in our core market.� About iParty Corp.
Headquartered in Dedham, Massachusetts, iParty Corp. (AMEX: IPT -
news) is a party goods retailer that operates 50 iParty retail
stores and licenses the operation of an Internet site for party
goods and party planning at www.iparty.com. iParty�s aim is to make
throwing a successful event both stress-free and fun. With over
20,000 party supplies and costumes and an online party magazine and
party-related content, iParty offers consumers a sophisticated, yet
fun and easy-to-use, resource with an extensive assortment of
products to customize any party, including birthday bashes, Easter
get-togethers, graduation parties, summer barbecues, and, of
course, Halloween. iParty aims to offer reliable, time-tested
knowledge of party-perfect trends, and superior customer service to
ensure convenient and comprehensive merchandise selections for
every occasion. Please visit our site at www.iparty.com. Safe
harbor statement under the Private Securities Litigation Reform Act
of 1995: This release contains forward-looking statements that are
based on our current expectations, beliefs, assumptions, estimates,
forecasts and projections, including those about better business
terms, future expectations of sales growth, improved gross margins,
profitability, the ability to take advantage of business
opportunities, and the industry and markets in which iParty
operates. The statements contained in this release are not
guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from
what is expressed in such forward-looking statements, and such
statements should not be relied upon as representing iParty�s
expectations or beliefs as of any date subsequent to the date of
this press release. Important factors that may affect future
operating results include, but are not limited to, economic and
other developments such as unseasonable weather, that affect
consumer confidence or consumer spending patterns, particularly
those impacting the New England region, where 45 of our 50 stores
are located, and particularly during the Halloween season, which is
our single most important season; intense competition from other
party supply stores and stores that merchandise and market party
supplies, including big discount retailers, dollar store chains,
and temporary Halloween merchandisers; the failure of any of our
systems, including, without limitation, our point-of-sale system
and our existing merchandise management system, the latter of which
was developed by a vendor who is no longer in business; the success
or failure of our efforts to implement our business growth and
marketing strategies; our inability to obtain additional financing,
if required, on terms and conditions acceptable to us; rising oil
and gas prices which impact prices of petroleum-based/plastic
products, which are a key raw material in much of our merchandise,
affect our freight costs and those of our suppliers, and affect
consumer confidence and spending patterns; third-party suppliers�
failure to fulfill their obligations to us; the availability of
retail store space on reasonable lease terms; compliance with
evolving federal securities, accounting, and stock exchange rules
and regulations applicable to publicly-traded companies listed on
the American Stock Exchange. For a discussion of these and other
risks and uncertainties which could cause actual results to differ
from those contained in the forward-looking statements, see Item
1A, �Risk Factors� of iParty�s most recently filed Annual Report on
Form 10-K for the fiscal year ended December 30, 2006 and iParty�s
most recently filed Quarterly Report on Form 10-Q.
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