EXHIBIT 99.1
[LOGO OF BLUEFLY]
Company Contact: Pat Barry
Chief Operating Officer
Chief Financial Officer
(212) 944-8000
Media Relations Contact: Michael Fox
Integrated Corporate Relations
(203) 682-8218
BLUEFLY ANNOUNCES MANAGEMENT CHANGES
President Melissa Payner-Gregor Assumes CEO Title
Alan Kane Elected Chairman of the Board
Ken Seiff to Serve as Strategic Advisor
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NEW YORK--August 26, 2004 -Bluefly, Inc. (NASDAQ SmallCap: BFLY) today announced
that Melissa Payner-Gregor has assumed the additional title of Chief Executive
Officer and will continue to serve as the Company's President. She will succeed
Ken Seiff, who has served as the Company's Chairman and Chief Executive Officer
since its inception in April 1991. The Company also announced that its Board of
Directors elected Alan Kane to the position of Chairman. Since Mr. Seiff advised
of his intention to resign, he, Ms. Payner-Gregor and the Board have worked
closely to ensure an orderly transition. Mr. Seiff is also stepping down from
his position as a director of the Company, but will be employed as a strategic
advisor.
Melissa Payner-Gregor has served as the Company's President since September
2003. Since joining Bluefly, Ms. Payner-Gregor has been instrumental in the
successful development of the Company's merchandising initiatives. In
particular, she has focused on updating the Company's assortment to include the
most current designer products and trends while maintaining the great values
that are the Company's hallmark. During her tenure, the Company has experienced
improved sell thru rates, strong sales growth and a marked increase in gross
profit margin. Prior to joining Bluefly, Ms. Payner-Gregor held senior
management positions with prominent retailers, including CEO and President of
Spiegel Catalog and President of Chico's FAS (NYSE: CHS).
Alan Kane, a professor of retailing at the Columbia University Graduate School
of Business, joined Bluefly's Board in August 2002. He is also a member of the
Board of Directors of Circuit City Stores, Inc. (NYSE: CC). Mr. Kane held the
position of President and CEO of Grossman's Eastern Division from 1993 - 1994.
Prior to this, he held the position of President and CEO of Pergament Home
Centers from 1991 - 1993.
Ms. Payner-Gregor stated, "I am delighted to be given the opportunity to lead
Bluefly in this new phase of our growth and equally confident in our ability to
continue the positive momentum we have generated over the past year. Our goals
continue to focus on strengthening our merchandising and marketing plans, and
improving all aspects of our customer experience, to further capitalize on the
increasing awareness of our franchise."
Mr. Kane commented, "I am pleased to have been asked by my peers on the Board to
serve as Chairman. We are excited to have Melissa, a 20-year industry veteran
with a proven track record at Bluefly and within the retail industry, to lead
our company in the next stage of our growth. Her talents and experience, both in
retail stores and direct marketing operations, have contributed tremendously to
our success and will continue to be critical to our ongoing evolution. She
possesses a great skill set that helps position us to become a preeminent source
for designer brands and current fashion trends at superior value."
"At the same time, we are deeply indebted to Ken for his leadership," Mr. Kane
continued. "His entrepreneurial spirit was fundamental to the building of this
company from an idea to almost $40 million in annual sales, as well as in
creating a truly unique retail franchise that is incredibly focused on its
customers."
Mr. Seiff said, "I am proud of the many accomplishments that Bluefly has
achieved and equally enthusiastic to turn over the CEO post over to Melissa, a
dedicated leader with strong business acumen. I have been privileged to work
with an extraordinary team that has served over 500,000 customers in a new and
better way. For me, this has been the experience of a lifetime."
About Bluefly, Inc.
Bluefly, Inc. (NASDAQ SmallCap: BFLY) is a leading online retailer of designer
brands, fashion trends and superior values. Bluefly is headquartered at 42 West
39th Street in New York City, in the heart of the Fashion District. For more
information, please call 212-944-8000 or visit www.bluefly.com.
This press release may include statements that constitute "forward-looking"
statements, usually containing the words "believe", "project", "expect", or
similar expressions. These statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements inherently involve risks and uncertainties that could
cause actual results to differ materially from the forward-looking statements.
The risks and
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uncertainties are detailed from time to time in reports filed by the company
with the Securities and Exchange Commission, including Forms 8-A, 8-K, 10-Q, and
10-K. These risks and uncertainties include, but are not limited to, the
following: the Company's limited working capital, need for additional capital
and potential inability to raise such capital; recent losses and anticipated
future losses; the risk that favorable trends in sales, repeat customer sales,
average order size, and customer acquisition costs will not continue; risks that
the Company will be unable to reduce the levels of losses; potential adverse
effects on gross margin and gross profit resulting from mark downs and
allowances; potential dilution arising from future equity financings, including
potential dilution as a result of the anti-dilution provisions of the Company's
Preferred Stock; the competitive nature of the business and the potential for
competitors with greater resources to enter such business; adverse trends in the
retail apparel market; risks and uncertainties associated with the Company's
recent launch of a new version of its web site, including new internal
procedures that need to be developed to operate the new web site, site
instability and download performance issues; risks of litigation for sale of
unauthentic or damaged goods and litigation risks related to sales in foreign
countries; the dependence on third parties and certain relationships for certain
services, including the Company's dependence on U.P.S. (and the risks of a mail
slowdown due to terrorist activity) and the Company's dependence on its
third-party web hosting and fulfillment centers; risks related to consumer
acceptance of the Internet as a medium for purchasing apparel; the successful
hiring and retaining of personnel; the dependence on continued growth of online
commerce; rapid technological change; online commerce security risks; the
startup nature of the Internet business; governmental regulation and legal
uncertainties; management of potential growth; and unexpected changes in fashion
trends.
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