Hudson’s Bay Company Has Had a Busy 48 HoursHudson’s Bay Company Has Had a Busy 48 Hours
Hudson’s Bay Company has sold Gilt, its member-based digital shopping business, to Rue La La. The company has also announced that it will shutter the iconic Lord & Taylor Flagship on Fifth Avenue in New York City.
February 14, 2019
Rue La La and Gilt, operating under the newly formed Rue Gilt Groupe, will continue to operate independently, maintaining their unique branding and respective customer bases. The deal will see Gilt capitalize on Rue La La's mobile-first approach to optimize its customer experience.
Rue La La is currently looking to hire more the 150 employees to oversee Gilt in New York City, Boston and Kentucky.
The transaction is expected to close in July.
"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,” says Mark McWeeny, chief executive officer, Rue La La. “Through the acquisition of Gilt and our evolution into a multi-brand platform, we are equipped for an acceleration in growth, innovation and profitability. Together with Gilt, Rue La La looks forward to increasing our presence and offering the attainable luxury and best-in-class experience that today's customers demand."
The Hudson’s Bay Company has also decided to close the iconic Lord & Taylor flagship store on Fifth Avenue in New York City, where it has stood for more than 104 years.
According to The Hollywood Reporter, that the decision came after net losses of more than $308 million in Q1, compared to a loss of $170 million in the year prior.
Last week, Lord & Taylor launched a digital flagship on Walmart.com
Hudson’s Bay Company is in the process of evaluating its weak retail assets and real estate portfolio. HBC has announced plans to close 10 Lord & Taylor stores through 2019, with a renewed focus on the brand’s digital business.
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