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.
3 thoughts on “Will Gilt Groupe in Canada survive? Gilt Groupe insists (despite rumours) that its finances are solid”
Now wouldn’t that be a nightmare….like hello?! I like having access to brands that are tough to find or non existent in Canada….lets all corss our fingers fashionista’s!!!
Did Gilt actually expand into Canada? I know they now offer shipping here, but I was under the impression it’s still shipped from the States, given the excessive duty and shipping charges they tack on. I still continue to ship to family and friends as it’s much cheaper to just pick it up south of the border.
You failed to report that Gilt Groupe isn’t the only flash sale site that has gone through layoffs and restructuring as of late. Rue La La laid off 11% of its staff in a restructuring and shut down its SmartBargains site last week. It isn’t surprising that after a few years of rapid growth, and in the face of a continuingly sluggish economy, the flash sale sector would be evaluating its businesses and workforce to improve efficiency.
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