ALBANY, N.Y.–(BUSINESS WIRE)–Aug. 15, 2000–Trans World Entertainment Corporation (Nasdaq National Market: TWMC), a leading retailer of entertainment products, announced today that it has agreed to acquire a majority interest in privately-held SecondSpin.com.
The recapitalization includes an equity investment of $5.0 million and a commitment for an additional $10.0 million in convertible debt that when converted would increase Trans World’s total ownership stake to 77%.
Based in Denver, Colorado, SecondSpin.com operates online and in store marketplaces for the buying and selling of used CDs, videos and DVDs. On the Internet, SecondSpin.com offers a large inventory of used CD and movie titles for purchase and was one of the first Internet sites to open brick and mortar locations. In the summer of 1998, the Company opened a location in Sherman Oaks, CA and now has additional locations in Costa Mesa, CA, Denver, CO, and Boulder, CO. SecondSpin.com has been chosen as “Best of the Web” by US News & World Report, an “Editor’s Pick” by America Online and described as “an audio- and videophile’s dream,” by Time Magazine.
Robert J. Higgins, Trans World’s Chairman and Chief Executive Officer, said, “Our investment in SecondSpin.com is another step in the evolution of our clicks and bricks strategy. SecondSpin.com’s President Gus White was an early proponent of the clicks and bricks model, and we look forward to the addition of SecondSpin.com’s expertise in this area. Furthermore, SecondSpin.com enhances the choices available to our customers for selection and price.”
Trans World’s investment will provide SecondSpin.com with sufficient working capital to enhance its online offerings as well as expand its brick and mortar presence. In addition, Trans World will offer SecondSpin.com assistance in securing real estate opportunities and extending product offerings. “Trans World’s retail expertise and extensive resources will enable us to extend our lead in the used CD and movie business,” said Gus White.
Trans World Entertainment is a leading specialty retailer of music and video products. The Company operates retail stores in 45 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and an e-commerce site, www.twec.com. Mall locations include Camelot, Record Town, The Wall, Saturday Matinee and F.Y.E. Freestanding locations include Coconuts Music and Movies, Strawberries Music, Spec’s and Planet Music.
Certain statements in this report set forth management’s intentions, plans, beliefs, expectations or predictions of the future based on current facts and analyses. Actual results may differ materially from those indicated in such statements. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the Securities and Exchange Commission.
CONTACT: TRANS WORLD ENTERTAINMENT CORPORATION John Sullivan, Chief Financial Officer, 518/452-1242 ext. 7400 or THE MWW GROUP Investor Relations, Michael Lendener, 212/704-9727