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Flash purchase site Gilt 250 million to sell the highest valuation of 1 billion 100 million

Phoenix Technology News Beijing on December 15th news, according to "the Wall Street Journal online edition reported that a number of informed sources, the Canadian Department Store magnate Hudson’s Bay was close to a $250 million deal with Gilt.

Gilt had a round of financing in 2011, when the company’s valuation reached $1 billion 100 million. In other words, Hudson’s Bay offer is less than 1/4 of the valuation was Gilt. Hudson’s Bay is the parent company of Sax Fifth Avenue boutique (Saks Fifth Avenue).

 

flash purchase site Gilt $250 million to sell: the highest valuation of $1 billion 100 million

according to the Dow Jones VentureSource summary data, since its inception in 2007, the total amount of Gilt financing of about $280 million, last year’s revenue of approximately $600 million. Informed sources said, Gilt and Hudson’s Bay has not yet reached a final agreement, the possibility of the existence of the possibility of the collapse of the negotiations.

one of the people familiar with the matter said, Hudson’s Bay plans to merge with its brand Saks Off 5th, Saks store opened in the Off 5th store in Gilt Gilt. Hudson’s Bay also plans to retain most executives Gilt.

Gilt is a pioneer in the field of flash purchase, is currently limited to the sale of furniture and fashion supplies. A few years ago, investors might expect Gilt to implement IPO (IPO), because of the flash purchase industry is booming, the company gained Softbank, Goldman and General Atlantic and other well-known investment company.

but in recent years, with the economic recovery in the United States, merchandise discounts become very common, flash purchase industry began to lose its appeal. In this case, Gilt’s business is also in trouble.

Hudson’s Bay offer is just a reflection of Gilt’s business is declining. According to informed sources, the third quarter of 2015, Gilt revenue of approximately $125 million, compared with $140 million last year fell by $10%. Third quarter, Gilt operating loss of $11 million. At the end of September 2015, Gilt cash flow only $16 million.

and some of its rivals, Gilt this year is turbulent, many executives chose to leave, and forced to implement layoffs. The head of the company’s marketing and overseas business executives in October to leave. Gilt valuations fell earlier this year due to the company’s turmoil. Informed sources, in February of this year, Gilt to $600 million valuation of financing $46 million

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