Once a hot start-up in the retail space, the flash sales site Gilt may be up for sale — and on deep discount relative to its value just four years ago. The potential buyer, according to the Wall Street Journal, is Hudson's Bay Company, the owner of Saks Fifth Avenue and Lord & Taylor.
The WSJ reported Monday evening that though the deal could still fall apart at this point, Hudson's Bay is looking at acquiring Gilt — which was valued at $1 billion when it raised $138 million from investors in 2011 — for about $250 million. The flash sales site brought in another $50 million in funding this past February, having stalled an initial public offering on which it had reportedly begun work in February 2014. Gilt's lower value would further suggest how much momentum it's lost since it launched in 2007. Hudson's Bay brought in sales of $8.2 billion last year, and in the most recent quarter, which ended Oct. 31, its net sales hit $2.6 billion, with same-store sales up nearly 13 percent.
A rep for Hudson's Bay declined to comment, citing a policy of not speaking to speculation or rumors. We're waiting to hear back from Gilt's team.