October 28, 2005
GroupGemstone Leads Investment in SneakerVilla, Inc.
Investment will help drive growth at innovative urban retailer

(New York, NY) –GroupGemstone announced today the successful closing of a $3M investment in SneakerVilla, Inc., the Philadelphia-based 14-store urban retail chain that’s reinventing retail in the urban core. As part of the transaction, GroupGemstone head Alexander Edelstein will join the SneakerVilla board.

The funds will be used to strengthen SneakerVilla’s balance sheet and prepare the company for major expansion. “SneakerVilla is redefining urban retail by delivering world-class customer service and community service to the underserved urban core,” said Mr. Edelstein. “We’re delighted to be a supporter of this company and to put it on a path for growth.”

Founded in 1989, SneakerVilla generates more than $20 million revenue annually at its 14 locations, which are located in Philadelphia and its surrounding region. The company’s strategy is to go into underserved areas, such as older downtown shopping areas, or smaller towns, and invest in the area both by putting in well-designed, classy stores, but also by hiring from the local community and creating job and managerial opportunities for local youth. SneakerVilla also delivers on an ongoing commitment to give back to the community, contributing to educational incentives, sponsoring Boys and Girls Clubs, partnering with police departments to keep guns off the streets, promoting neighborhood clean-ups and supporting reading programs at local schools.

“Our vision is to change and enhance the way business is done in the inner-cities” said Jason Lutz, founder and CEO of Sneaker Villa. “Our mission is to be the premier fashion retailer by fusing the best of fashion and music into a high energy shopping experience. GroupGemstone’s funding and experience will help us move forward.

The GroupGemstone family of companies operates in Real Estate Development, Entertainment and Apparel Retailing and invests in technology private equity. Operating Companies include Gemstone Development, developers of the 700-unit Manhattan Condominiums on Las Vegas Boulevard in Las Vegas. GroupGemstone also is lead investor in Sneaker Villa, the $20m East Coast urban retailer whose innovative stores combine leading edge hip-hop fashions with community renewal and reinvestment. GroupGemstone manages two private equity funds, which have included investments in Google, Tellme Networks, and Shopping.com. GroupGemstone was founded and is operated by Alexander Edelstein, and is based in Las Vegas.