Seaway Valley Capital Corporation and Hackett's Stores, Inc. in Discussions With Xiamen, China-Based Consulting Company to Sourc
SACKETS HARBOR, N.Y., April 20, 2010
Hackett's Stores, Inc. (Pink Sheets:HCKI), a holding of Seaway Valley Capital Corporation (Pink Sheets:SEVA), is pleased to announce that it has begun discussions with a Xiamen-based consulting group to develop Chinese manufacturing sources for its recently announced pay-at-scan venture, WiseBuys. Located across the strait from Taiwan, Xiamen's key manufacturing industries relevant to the proposed venture include electronics, pharmaceuticals, textiles, foodstuffs, and building materials among others.
WiseBuys President and CEO, Herbert Becker stated, "Seaway Valley has been laying the groundwork for this deal for many months, so these relationships haven't been formed over night." Mr. Becker continued, "China was a logical place to start since it provides such a large percentage of the consumer products currently in the U.S. retail network, but the venture will look to include manufacturing companies around the globe and in the United States."
The Xiamen-based relationship was developed with the assistance of ACG Consulting, with which the company recently executed a letter of intent to raise $7 million in new capital to fund WiseBuys and a separate software development company in conjunction with the formation of a joint venture EB-5 Region Center.
WiseBuys intends to develop a new discount retail concept wherein all merchandise is placed in each new store on consignment, which is referred to "pay-at-scan." The new business will seek partnering directly with manufacturers both in the United States and abroad. Merchandise being sought by WiseBuys would most likely be discounted obsolete or "over run" merchandise, and specialized software will enable each manufacturing partner to directly monitor its inventory, sales, and cash proceeds in a secured network environment. WiseBuys intends to open outlets only in larger population centers initially in the Northeast United States and in spaces greater than 50,000 square feet. WiseBuys will only open new stores where realistic target annual sales per square foot will be at $250 or greater.
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