Buy.com to Take Over Reel.com’s Sales
PORTLAND, Ore. — Hollywood Entertainment Corp.’s Reel.com unit is relinquishing Internet sales of movies and other entertainment products to Buy.com Inc. because of continued losses and problems obtaining funding.
The move, which includes firing 150 of 160 Reel.com employees, is in the best interest of banks and investors, Hollywood Entertainment said. Reel.com customers will be linked to Buy.com’s Web site, where their orders will be processed. Buy.com also will deliver merchandise to Reel.com customers.
Reel.com, based in Emeryville, Calif., had a loss of $69 million on sales of $21.6 million through nine months of 1999, the company said in a regulatory filing.
Shares of Buy.com fell 13 cents to $5.13 on Nasdaq. The company had sold 14 million shares in February at $13 a share. Hollywood Entertainment, based in Wilsonville, Ore., fell 9 cents to $7.25, also on Nasdaq. The stock has fallen 50% this year.
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