Trans World Entertainment, parent of the f.y.e. and Suncoast retail chains, acquired etailz, Inc., an ecommerce retailer and services company, last week, the companies announced.  The purchase price was $75 million in cash and stock, which includes contingent payments tied to etailz’ profitability over the next two years and employee retention bonuses.

Etailz operates ecommerce websites (although nothing directly tied to Trans World’s primary product categories) and specializes in placing merchandise on other marketplaces, including Amazon, eBay, and Jet.  But perhaps the most important thing it brings Trans World is growth:  the company booked $93 million in sales last year, with a three-year growth rate of 614%.

Trans World is trying to rapidly pivot from its declining packaged media (music and video) businesses to "trends," which includes licensed merch and games, by reformatting existing stores, and by opening new stores in the new merch-heavy format as it closes poor performers (see "Trans World Opening 18 New Stores").

Trans World CEO Mike Feurer stressed this need to change the company in the announcement. "In the past several years, the entertainment based retail industry and the retail landscape in general have experienced tectonic shifts and disruptions necessitating creative and transformative collaborations in order to continue serving customers within such a dynamic and competitive environment," he said.  "This acquisition unlocks a unique opportunity for our two companies to engage, compete, and thrive as a true omni-channel retailer."