News

Lights out at Bluelight.com

March 20, 2002

SAN FRANCISCO - Bluelight.com, the independent company formed two years ago to operate Kmart Corp.'s (NASDAQ: KM) Web site and e-commerce operations, was bought out by Kmart in a deal expected to be complete by August 1.

In a company news release, Bluelight.com said that all shares and interests in the company would be acquired by the Troy, Mich. retailer, which previously owned a 60 percent share.

Kmart reported that it had installed 3,500 Web-based kiosks in stores nationwide in January, in hopes of boosting its online shopping sales. Kmart encouraged shoppers to purchase goods online both in stores and through a free Internet service operated by Bluelight.com.

Bluelight.com has suffered a series of setbacks this year. In May, chief executive officer Mark Goldstein resigned and Kmart took over management of the company. An unspecified number of the company's 194 employees were laid off. The company did not say how many employees, if any, will remain in Bluelight.com's San Francisco office.

Bluelight.com was formed in 1999, with Softbank Venture Capital and Martha Stewart Living Omnimedia Inc. participating in its financing.