Zany Brainy has teamed up with Online Retail Partners to develop an e-commerce site for the multimedia chain. The Web site, www.zanybrainy.com, will feature the same selection of products sold in Zany Brainy stores, including toys, games, books and multimedia packages. The site is expected to be operating by late November.
Zany Brainy's partner in building the site, Online Retail Partners, is a newly formed, New York“based company that will provide capital and a shared infrastructure of marketing and technology resources to established branded retailers to help them create e-commerce businesses. Under its agreement with Zany Brainy, ORP and Zany Brainy have formed ZB Holdings, through which zanybrainy.com will operate as a wholly owned subsidiary. Zany Brainy and ORP will each make initial $5-million cash contributions to development of the site, and ORP has agreed to invest an additional $10 million in the site by November 15.
Control of ZB Holdings will be split equally between Zany Brainy and ORP, and Zany Brainy will not consolidate ZB Holdings into its financial statements. ORP and Zany Brainy have agreed to share losses and profits in such a manner that Zany Brainy not record any losses during 1999 in connection with the launch of the new site.
CORRECTION: The exhibition guide noted in the story on book publishing at The New York Times (News, Oct. 18) will also include art exhibitions around the world.
