Two new developments in major company sales were reported earlier by Re/code. The first: One Kings Lane, which was valued at nearly a billion dollars in 2014, has reportedly been “running a process to sell the company for several months,” in an attempt to sign a deal by December 31, 2015. The brand had notified potential buyers within the last few months that it was open to selling for under $230 million, which is the amount it had raised in venture capital, but the article sources say a deal is unlikely to fetch more than $150 million. As EAL reported, the company last month laid off 25 percent of its senior management staff.
Gilt CEO Michelle Peluso
In other news, Gilt is finalizing its sale to Hudson’s Bay, which is the owner of Saks and other department store chains, in an acquisition set to close February 1. Hudson’s Bay will acquire Gilt for $250 million in cash, though Gilt had previously raised approximately $280 million in venture capital and was, in the past, valued by investors at $1 billion-plus. Gilt customers will now be able to return items to Saks Off 5th locations, which will later house Gilt concept stores.
“Opportunities for revenue growth at Saks Off 5th include increased customer traffic to stores from Gilt customers making returns, and sales to customers visiting Gilt concept shops inside Saks Off 5th locations,” noted the company’s announcement. “Opportunities for expense savings and operational efficiencies from combining the businesses include reduced shipping costs, increased purchasing power, and shared inventories across Gilt and Saks Off 5th.” Gilt CEO Michelle Peluso will remain at the company through the spring.