Evine Live has appointed a new CEO and made a deal with its largest and most tenured vendor, The Invicta Watch Group (IWG), which will give the supplier a significant role in the multichannel retailer’s operations.
As part of a series of moves, Evine appointed Tim Peterman, the company’s former COO and CFO, as its new CEO. Prior to taking on Evine leadership, Peterman was COO and CFO of Amerimark Interactive.
While naming Peterman CEO, Evine also appointed Eyal Lalo, Invicta CEO, as vice chairman, a board role designed to work in close association with the CEO. In addition, Evine named Michael Friedman, a longstanding Invicta partner, to Evine’s board. Bob Rosenblatt, Evine’s former CEO, will remain on the company’s board, where he will assist in the management transition and contribute to Evine’s strategy.
As it announced the management changes, Evine stated that it had sold $6 million of common stock at 75 cents per share, a 97% premium to Evine’s closing stock price on the day prior to signing the purchase agreement, to investors that include, among others, Lalo, CEO of IWG and Peterman. The investors also will receive five-year warrants to purchase an aggregate of 3.5 million common stock shares with an exercise price of $1.50 per share, a 295% premium to Evine’s closing stock price on the day before the purchase agreement signing. Evine also secured a $5 million increase in its vendor line for IWG’s family of brands, an IWG commitment to invest an additional $25 million in Evine product during 2019 and secured a five-year TV retailing exclusivity commitment from IWG.
Bob Rosenblatt, Evine’s former CEO, said, “It is exciting to have Tim back to lead Evine on its continuing journey to profitability while utilizing his strong experience and relationships in interactive media and e-commerce to help us chart a compelling growth strategy. In addition, Eyal’s financial commitment as an investor and his leadership as vice chairman will help us accelerate our brand building opportunities and strengthen our balance sheet. I couldn’t be more excited as a board member and shareholder to have Tim and Eyal helping lead our organization into its next chapter.”
Lalo said, “Fostering an entrepreneurial, fast-moving culture in which leaders and employees work to produce amazing results will be an important strategic priority for us.”
Evine chairman, Landel Hobbs, added, “Deepening our relationship with IWG adds value for both the company and its shareholders, especially as Evine continues to chart its course in the role of interactive video commerce in the future of retail, entertainment and media. In addition, Tim’s strong experience and relationships in interactive media and e-commerce will help us continue to chart a compelling growth strategy. And the deep expertise that Eyal brings to the board will further enhance our strategies and execution.”