Eric Kuhn has the idea to sell college textbooks online.
Varsity moves out of two sublet rooms in a town house and moves to a Georgetown loft.
Experienced top managers are hired, including Richard Hozik as chief financial officer and Maryann Bastnagel as chief information officer. Employees are disappointed to learn the company is conducting a reverse split, through which each two shares of company stock are turned into one. Staff count tops 200. Co-founder Levy leaves the company. Varsity Group lays off dozens more employees, bringing the total staff count to about 20.