DJs and TheSpot silent on possible e-tailer buy-out

David Jones and local dot-com TheSpot remained tight-lipped over reports last week that DJs is set to take over the struggling e-tailer.

Spokespeople from both companies would neither confirm nor deny if DJs was going to rescue the failing online retailer, following major shareholder F2 Investment's withdrawn investment last week.

Reports about TheSpot's acquisition were "speculative" which David Jones "didn't wish to comment about,"a spokeswoman said. She would not indicate if or when the retail giant would announce their details on the buy-out.

However, it is understood David Jones is developing a new e-commerce plan as part of an overall corporate strategy to "reposition the brand". News of the online strategy may accompany the company's end of financial year earnings release in July 2000, the spokeswoman revealed.

A spokesman for TheSpot apologised for "being so cagey", predicting the e-tailer may release details on their financial situation this week.

Despite a capital injection of $10.4 million this year, primarily from Fairfax and Amazon.com joint-venture, F2 Investments, TheSpot is believed to have spent beyond its means, with a $400,000 monthly outlay.

He would not reveal if the company planned to add any new sites to its health, beauty and toys suite under a potential take-over.

Both companies also declined to comment on rumours that The Spot would be backed by an unknowninvestor, in a deal reportedly worth $5 million.

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