Report: Rue La La attracts Gilt Groupe for potential sale
Fashion e-commerce company Rue La La, which specializes in flash sales for its members, is reportedly putting itself up for sale and rival online shopping site Gilt Groupe could be a potential suitor.
First reported by Reuters, the potential sale of Boston-based Rue La La, which hawks discounted premium brands and is partially-owned by eBay, could fetch up to $400 million. Gilt Groupe has reportedly shown an interest in acquiring Rue La La, which has hired JP Morgan Chase to advise on a possible sale, according to a Reuters report that relies on anonymous sources.
Representatives for Rue La La and Gilt Groupe did not immediately respond to requests for comment.
After buying former Rue La La parent GSI Commerce for $2.4 billion in 2011, eBay divested 70% of the e-commerce site. GSI had previously paid $350 million for both Rue La La and fellow e-commerce site SmartBargains, in 2009.
For Gilt Groupe, a major acquisition could serve to beef up the company’s business ahead of a possible IPO sometime later this year, which has been reported by multiple outlets.