HBC rids itself of Gilt
Both brands will continue to operate independently under the newly formed Rue Gilt Groupe.
Together, the Rue Gilt Groupe portfolio will serve over 20 million members and will capitalize on Rue La La's mobile-first approach to do so, the company said.
"Having achieved record revenues and profits in 2017, Rue La La is poised to further strengthen its leadership position in fashion off-price e-commerce. Through the acquisition of Gilt and our evolution into a multi-brand platform, we are equipped for an acceleration in growth, innovation and profitability," said Mark McWeeny, CEO of Rue La La.
Rue La La’s executive chairman Michael Rubin said he expects the group’s growth trajectory to quickly surpass $1 billion in total sales.
“This transaction places the Rue Gilt Groupe in the premier tier of e-commerce growth companies. Our two distinct brands have large, highly engaged customer bases, cutting edge technology and mobile leadership,” he said.
The Hudson's Bay Co., which operates Saks Fifth Avenue and Lord & Taylor among others, bought Gilt for $250 million in 2016.
Rue La La is owned by privately held Philadelphia-based e-commerce company Kynetic, which also owns Fanatics and ShopRunner.
It intends to hire more than 150 associates to run the Gilt business in New York, Boston and Kentucky, as well as other sites across the country.
The transaction is expected to close in July 2018.
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