Rue Gilt Groupe plans U.S. IPO
E-commerce discount retailer Rue Gilt Groupe is the latest brand rumored to be preparing to file for an initial public offering.
According to Bloomberg, the company, backed by billionaire Michael Rubin and led by chief executive officer Mark McWeeny, is working with underwriters ahead of a U.S. public-market debut.
E-commerce flash sale site Rue La La acquired Gilt from Hudson's Bay Company (HBC) in 2018 after the latter purchased Gilt just two years prior. Rue La La purchased Gilt for under $100 million — a far cry from the billion-dollar valuation it had received in 2011. Earlier, the Hudson's Bay bought Gilt for $250 million in 2016.
Both brands operate independently under the newly formed Rue Gilt Groupe. In a bid to take its outlet shopping online, in 2019, the nation’s largest shopping mall operator, Simon Property Group Inc., acquired a 50 percent stake in the business, for $280 million.
At purchase, Rue Gilt Groupe said it had more than 25 million members and was on track to surpass $1 billion in annual sales. The companies have since collaborated to launch ShopPremiumOutlets.com, where shoppers can find discounted products from thousands of brands.
The company would join the likes of Poshmark, ThredUp, Dr Martens and The RealReal who have all filed for an IPO since the start of the year.
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