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By
Reuters
Published
Dec 15, 2015
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Hudson's Bay close to buying online retailer Gilt Groupe

By
Reuters
Published
Dec 15, 2015

Canadian department store operator Hudson's Bay Co is close to a deal to buy online luxury retailer Gilt Groupe for about $250 million, the Wall Street Journal reported, citing people familiar with the matter.


Gilt


Gilt, which was valued at $1 billion in 2011, will be paired with Saks Off 5th brand, the WSJ said, citing one source.

Hudson's Bay, which bought U.S. luxury retail chain Saks Fifth Avenue in 2013 for $2.4 billion, plans to open Gilt shops inside Saks Off 5th stores, the Journal said.

"It is our policy not to comment on rumors or speculation," Hudson's Bay spokeswoman Tiffany Bourre said. Gilt was not available for comment.

The Journal said a final deal has not yet been reached and cautioned that the talks could still fall apart.

Gilt, which runs limited-time online sales of furniture, fashion and other products, has struggled in the face of stiff competition.

Liberty Interactive Corp, which owns home shopping network QVC, said in August it would acquire Zulily Inc, a flash-sale site for moms, in a deal valued at $2.4 billion, a 15 percent discount to Zulily's 2013 initial public offering price.

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