Canadian retail business group Hudson's Bay Co., which owns Saks Fifth Avenue, is near a deal to buy Gilt for about $250 million, just about one quarter of the $1.1 billion of its valuation price four years ago, the Wall Street Journal (WSJ) has reported.
That sale price would be about a quarter of the reported $1.1 billion value that venture capitalists placed on Gilt in 2011, marking yet another private company valued at $1 billion or more by venture capitalists to falter.Canadian retail business group Hudson's Bay Co., which owns Saks Fifth Avenue, is near a deal to buy Gilt for about $250 million, just about one#
A final deal with Hudson's Bay hasn't yet been reached and talks could still fall apart, with the possibility that another company could outbid Hudson's Bay, which was planning to announce the deal early next year.
Hudson's Bay plans to pair Gilt with its off-price Saks Off 5th brand, according to a source. Plans under consideration include opening Gilt shops inside Saks Off 5th stores. However, HBC plans to leave most of Gilt's management intact.
Gilt was a pioneer of so-called flash sales that bloomed during the recession, producing Rue La La, One Kings Lane and others. Entrepreneur Kevin Ryan created a new model for luxury sales in the spring of 2007 with a website that sold designer duds at deep discounts, mirroring sample sales. (SH)
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