Iparty (AMEX:IPT)
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iParty Corp. (AMEX: IPT), a party goods retailer that operates 50 iParty
retail stores, today reported that it has entered into an Asset Purchase
Agreement to purchase two retail stores in Lincoln, Rhode Island and
Warwick, Rhode Island, currently operated as Party City franchise
stores. The purchase price will be $1,350,000 plus up to $400,000 for
associated inventory. The Lincoln store is located in the Lincoln Mall,
a regional shopping center located on George Washington Highway in
Lincoln, RI. The Warwick store is located in the Cowessett Corner
Shopping Center on Quaker Lane in Warwick, RI. The agreement provides
for a closing date on or about January 3, 2008. Both locations will be
converted into iParty stores immediately following the closing. The
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 3
years, subject to the terms and conditions set forth in the agreement.
In connection with the acquisition of the two retail store locations,
the company also announced that it will be closing its existing retail
party goods store in North Providence, Rhode Island at the end of that
store’s current lease term, which expires in
January, 2008.
Sal Perisano, Chairman and CEO of iParty Corp., commented, “Acquiring
these two stores is consistent with our stated goal of continuing to
seek strategic opportunities in our core New England market. We will be
able to strengthen our presence in Rhode Island and leverage our
advertising and administrative costs as we seek to improve our overall
company profitability.”
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 our 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
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
Quarterly Report on Form 10-Q or the period ending June 30, 2007.