LivingSocial plans to close its facility in Washington

January 31
ONLINE BUSINESS
LivingSocial plans to close its NW facility

LivingSocial will stop producing live events and close its facility at 918 F St. NW this spring as executives focus the business on providing merchants with an online platform to market their products, the District-based company said Friday.

The news comes on the same day the company posted a net loss of $183 million for 2013, including an $82 million net loss because of charges associated with the sale of a South Korean business unit. The firm brought in revenue of $399 million last year.

The figures mark an improvement from the company’s net loss of $653 million in 2012, during which time it wrote down the value of several daily-deals companies it acquired overseas. That year, LivingSocial collected $455 million in revenue.

LivingSocial’s financial results were disclosed in a regulatory filing by Amazon, which owns nearly 30 percent of the company. Amazon founder Jeffrey P. Bezos owns The Washington Post.

Exiting the event production business will affect 14 full-time and 20 hourly employees, the majority of whom work at 918 F St., said chief executive Tim O’Shaughnessy, who announced plans to step down last month. Some full-time workers may be reassigned to positions within the company and others will receive severance packages.

— Steven Overly

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On Monday: ISM manufacturing index for January released at 10 a.m.

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