Chicago-based online sports retailer MVP.com announced
plans to lay off 79 employees. The company is closing its
offices in Boulder, CO, which affects 39 people and its
offices in Austin, TX, which affects 20 employees. MVP.com
will also eliminate 20 positions at its headquarters. The
company is consolidating all operations in Chicago
(MVP.com). An MVP.com spokesperson said that the job cuts
are "across the board," impacting technology and marketing
positions (CRAIN'S CHICAGO BUSINESS, 12/18). BLOOMBERG NEWS'
Rick Westhead noted the cuts come one month after
SportsLine.com ended its $120M agreement with MVP.com
because the Web retailer missed two payments and owed $107M.
MVP.com sources said that the staff reduction is "an effort
to cut costs." The 79 employees laid off equals 48% of
MVP.com's workforce. Westhead noted that "many of the
employees affected formerly worked for" PlanetOutdoors.com
and IgoGolf.com, both acquired by MVP.com this year
(BLOOMBERG NEWS, 12/18). MVP.com Dir of Corporate
Communications Paula Davis said that the firings had
"nothing to do with financial problems," including the
terminated deal with SportsLine. Davis said sales have been
"[brisk] through the holiday season" (N.Y. POST, 12/19). In
Denver, Jeff Smith notes that the job cuts come "four months
after MVP.com acquired PlanetOutdoors.com" (ROCKY MOUNTAIN
NEWS, 12/19). In Boulder, Christine Romero writes that at
the time MVP.com purchased PlanetOutdoors.com in August, the
deal "included laying off 25 local workers," and "hoping to
cut costs," PlanetOutdoors.com laid off 20 employees in May
(Boulder DAILY CAMERA, 12/19).
IN THE PAST TENSE? In Chicago, Darcy Evon notes that
MVP.com "had everything going for it" when it launched last
January with backing from John Elway, Michael Jordan and
Wayne Gretzky. Evon notes the "company won kudos for its
good item cross-selling, visual presentation and product
comparisons" (CHICAGO SUN-TIMES, 12/19). TheStandard.com's
Eric Young noted that MVP.com launched with $65M, but the
company has been "seeking additional cash for its business."
MVP.com execs "had hoped to land additional investors by the
end of the year" (TheStandard.com, 12/18). In Chicago,
Comander & Tatum wrote that the "star power" of Jordan,
Gretzky and Elway "hasn't been able to shield [MVP.com] from
harsh economic realities" (CHICAGO TRIBUNE, 12/19).
