Damark International Inc., Minneapolis, said yesterday that its board approved a plan to spin off its ClickShip Direct Inc. subsidiary as an independent, publicly traded company. ClickShip Direct provides order management, product fulfillment and customer care services for e-commerce companies.
Damark last month announced plans to shed its catalog marketing operations and divide its business into two divisions, one focusing on its membership clubs and the other, ClickShip Direct, on e-commerce services.
The move to spin off ClickShip Direct as a separate company was expected, and the company’s stock had reacted favorably, trading as high as $47.25 during regular hours yesterday before closing at just over $40, about four times its level throughout most of last year. Damark said the spinoff is contingent upon the receipt of a favorable tax ruling from the Internal Revenue Service.
