New York, July 28 (Bloomberg) -- Bluefly Inc., an Internet
retailer of designer clothing at discount prices, said an
investor group led by billionaire George Soros's Private Equity
Partners LLC agreed to invest $10 million in the company to boost
marketing and advertising.
Shares of Bluefly rose 3, or 30 percent, to 13 1/8 in
midafternoon trading of 3.8 million, more than 38 times the three-
month daily average. The stock had lost half its value since Dec.
1, its highest since the company went public in 1997.
The investment will also allow Bluefly to build inventory as
the Christmas shopping season approaches, the company said. New
York-based Bluefly, which had sales of $240,000 last year, said
last month it will sell household accessories to offer customers
more products and attract more online shoppers.
Soros ''brings an intangible to the company, not just
capital,'' said Roger Redmond, an analyst at Goldsmith, Agio,
Helms & Co. in Minneapolis, who has a ''strong buy'' on the
stock. He said the investment group has a broad array of
relationships that it can bring to the company.
The investment will give the Soros-led group a 19.5 percent
stake in Bluefly, making it the company's largest shareholder.
The company added that it's open to exploring ''additional
opportunities'' with other investors.
Redmond said Bluefly has the potential to double or triple
its $63 million market value in the next 12 months to 24 months.
Soros Private Equity Partners is an affiliate of Soros Fund
Management LLC. The investment group also includes closely held
Pilot Capital Corp., an investment firm specializing in
technology companies.
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