On August 22, 2011, Gilt Groupe added a Facebook shopping section. The firm purchases vendor inventory at an extreme discount, adding a margin in order to make a profit. Sales last 36–48 hours and feature merchandise from a single brand or small groups of brands. Gilt Groupe visitors must be members in order to view sales. On OctoGilt Groupe and Simon Property Group announced a joint venture for, an online shopping platform focused on its outlet malls, to create a new e-commerce platform dedicated to value shopping. In June 2018 it was announced the HBC would be selling Gilt to Rue La La. On January 7, 2016, Gilt Groupe announced its acquisition by Hudson’s Bay Company, owner of luxury department store chains Hudson’s Bay, Lord & Taylor and Saks Fifth Avenue, for $250 million. Such a cash infusion is known as "down round" which hurts employee morale and devalues the founders' stakes. By 2015, Gilt was raising money "at a lower valuation than the $1 billion at which it reportedly raised $138 million in 2011". The IPO kept getting delayed and ending up never happening, while the firm never reached profitability. Flash sales companies were also seeing slower growth, thanks in part to e-mail fatigue (the key means for flash sales to be promoted) with e-mail providers increasingly classifying these messages as spam). This was the first of several acquisitions.Īccording to Business Insider, during its "hyper-growth years, the company overextended itself and lost focus", as the expanded business segments such as "Full-price retail, travel, and food were sucking resources from Gilt's core categories - discounted women's fashion", and Gilt was forced to sell these non-core businesses at a loss. In 2010, Gilt acquired luxury deal-of-the-day site Bergine. By February 2014, Gilt Groupe was preparing for an IPO. In 2009, growth equity firm General Atlantic led a series C funding round, joined by previous investor Matrix Partners. It later added, Gilt City and Gilt Home in 2010 and Gilt Taste in 2011. It added Gilt Groupe Japan, Gilt Fuse, and travel site Jetsetter in 2009. The company launched women's clothing and accessories in November 2007 and menswear in April 2008. The original business plan consisted of "flash sales," selling a limited number of luxury designer items at steep discounts for brief periods. Ryan, Michael Bryzek and Phong Nguyen, with Alexis Maybank, and Alexandra Wilson joining shortly after the company's inception who modeled Gilt after Vente-Privee, an online fashion retailer in France. Gilt Groupe is based in New York City with warehouses in Brooklyn, New York, Las Vegas, Nevada, and Shepherdsville, Kentucky. On June 4, 2018, Boston, Massachusetts-based Rue La La acquired Gilt from HBC. Prior to the Hudson’s Bay acquisition, sales were exceeding growth projections but the firm had not been profitable yet. On January 7, 2016, The company was sold to Hudson's Bay Company for approximately $250 million. Gilt is an online shopping and lifestyle website based in the United States, launched in 2007.
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