LuxeYard Acquires LeatherGroups.com

May 8, 2012  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on May 9, 2012

Luxury home furnishings and decor flash-sale site LuxeYard has acquired LeatherGroups.com, the online division of Solana Beach, Calif., furniture retailer homeLOFT.

Terms of the deal were not disclosed.

LuxeYard will assume all assets of LeatherGroups.com, including its existing inventory, customer base and multiple domain names, including SofaGroups.com and PatioFurnitureGroups.com.

The transaction coincides with the creation of an acquisitions team, which will be based in LuxeYard's New York office. The company is pursuing several other acquisitions as part of its effort to consolidate the flash-sale category and to spread social and mobile e-commerce with its Concierge Buying and Group Buy technologies.

LeatherGroups.com was created by LuxeYard CTO Jerry Wilkerson in 2002 and the company has since shipped thousands of orders to every state in the U.S. The first site to specialize in sales of leather furniture on the Internet, LeatherGroups.com was designed to reduce excess inventory by offering clearance pricing on discontinued styles of leather sofas, loveseats, chairs and ottomans.

"LeatherGroups is the perfect complement to our core home furnishings flash sale business and demonstrates our ability to make the strategic acquisitions necessary to achieve our long-term objectives," said Tony Winders, executive vice president of revenue. "Not only does the acquisition add to our topline revenue, it extends the reach we can deliver to our suppliers and provides a wider selection of quality furniture at the best prices for our members."

"Having helped build the quality team and technology at LuxeYard, I'm confident our vendor relationships and customer base are in great hands," said Wilkerson. "I'm proud to apply my ten-year investment in LeatherGroups.com to the bigger opportunity afforded by bringing these two innovative companies together."