Will Gilt Groupe in Canada survive? Gilt Groupe insists (despite rumours) that its finances are solid

Gilt Groupe

, grand poohbah of online designer flash sales and purveyor of Lady Gaga’s Mugler dress, has taken to the Internet to defend its financial health. After yesterday’s BetaBeat report of impending layoffs and restructuring at the company, Gilt CEO Kevin Ryan contacted AllThingsD to do some damage control. “We are not closing down any businesses,” he said, adding that the 50 or so layoffs that executives have planned will be more than offset by hiring in the coming months. Whether or not Gilt is in a spot of financial trouble, it’s still contending with a flood of competition from Ideeli, Beyond the Rack, Rue La La and the like. We’re left wondering if the expansion into Canada wasn’t just a wee bit premature.