Private equity firm Clearlake Capital Group LP is taking online retailer Bluefly Inc. (Nasdaq: BFLY) private.

The private equity firm has already bought more than 90 percent of Bluefly’s shares, and will buy the rest of them through a short form merger at $0.10 per share. Bluefly was trading at $0.39 on May 22. The deal was announced May 23. Bluefly’s shares stopped trading as of May 24.

Clearlake bought 89 percent of the shares from Rho Ventures VI LP, Quantum Industrial Partners LDC, Maverick Fund USA Ltd., Maverick Fund LDC and Maverick Fund II Ltd and Prentice Consumer Partners LP, for $0.0076 per share. Bluefly also issued 2.85 million new shares of common stock to Clearlake as part of the deal, U.S. Securities and Exchange Commission filings show.

Bluefly, headquartered in New York, sells men and women’s designer clothes, accessories and beauty products at discounts through its website.  The company sells more than 350 brands, discounted up to 75 percent off. In 2011, Bluefly expanded, launching Belle & Clive, a members-only shopping website, and Eyefly, an online glasses retailer.

Clearlake will re-energize the business, says Bluefly CEO Joseph Park in a company statement.

Bluefly has operated at a loss since it was founded in 1998, the company says in filings with the U.S. Securities and Exchange Commission. Mergers & Acquisitions added Bluefly to the 

Distressed Company Watch list after in an April 16 SEC filing, the company indicated doubts about its ability to continue without liquidation

On May 17, Bluefly said that if it were unable to complete a proposed strategic transaction, or secure additional financing, the company would be unable to sustain its operations.

As of March 31, the company had no cash, and an accumulated deficit of $191.5 million, it said in SEC filings.

Clearlake focuses on corporate divestitures, recapitalizations, buyouts, reorganizations, turnaround and other private equity investments. The firm manages $1.4 billion in capital. Clearlake also invested in watch company Swiss Watch International in December. 

The firm bought a division of Archer Ltd. for $244 million in May, and picked up Mformation Technologies Inc. in September. 

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