Just this year the online sporting-goods retailer expanded its line of merchandise. Now the site is trimming back - starting with its staff. Most of the layoffs will happen in Austin, Texas, and Boulder, Colo., where MVP acquired e-commerce businesses this year in its effort to expand its line of merchandise. MVP will operate the e-commerce sites from its Chicago headquarters, said MVP spokeswoman Paula Davis. Indeed, many e-retailers are struggling, having fallen out of favor with investors and faced with increased competition from traditional stores.
Consolidation is already underway among the online sporting-goods sellers.
Like many other Internet retailers, MVP has had a tough time translating the initial burst of publicity that surrounded its launch into long-term success. The deal with SportsLine had been considered a major coup for MVP because it allowed the fledgling site to partner with an online powerhouse. But the partnership quickly went from bad to worse in November, when SportsLine said it was dropping MVP as its e-commerce partner. SportsLine cited MVP's overdue payment and its failure to live up to other unspecified agreements as the cause. For its part, MVP insists the missed payment is not a sign of sluggish sales.