Department store chain Harris Scarfe has acquired e-tailer Dstore in a buyout reportedly worth $8 million.
Camworks, the B2B and B2C e-business arm of Harris Scarfe, is bailing out Dstore after the e-tailer failed to achieve a multichannel distribution model, said outgoing Dstore CEO David Gold. He cited the need for an established retail partner and financial difficulties as contributing factors.
Dstore is reported to have burnt through $23 million in its first year of operating due to "difficulty" in luring online customers, and a failed bid to raise $10 million among investors after going broke in January.
Nonetheless, Camworks COO David Brooks said he was confident the businesses would become profitable by expanding Dstore's range with Harris Scarfe's 3000-plus buying relationships and 200,000 item merchandise line.
Harris Scarfe began integrating Dstore's operations into Camworks last Friday. Camworks processes 1500 to 2000 Internet and phone orders each week. Harris Scarfe's customer base is expected to jump by 150,000 through the acquisition.
The Dstore acquisition includes Dstore's wishlist.com (20 per cent) and eFill (50 per cent).