Boston’s online fashion flash sale site Rue La La is considering a sale that could fetch up to $400 million. According to Reuters, the stylish firm has piqued the interest of soon-to-IPO deal site Gilt Groupe, and has brought on JP Morgan Chase as an adviser for the potential deal.
Rue La La, and fellow sales site SmartBargains, were acquired for $350 million by ecommerce firm GSI Commerce. Three years later, eBay bought out GSI Commerce for a whopping $2.4 billion. While eBay divested 70 percent of its Rue La La ownership into a new holding company, the online marketplace firm still owns a minority stake.
Last week, Rue La La named a new CMO and president in Lisa Rhodes. Rhodes reports to Steve Davis, Rue La La's CEO since founder Ben Fischman left in April 2013.
Back in January 2012, Rue La La raised $22 million, shortly after laying off 60 people and closing down the SmartBargains.com side of its business.
Rue La La is one of three of Boston’s big e-commerce players, all of which have been busy as of late. Home decor site Wayfair is currently preparing for its initial public offering, due sometime in second half of 2014. Streetwear retailer Karmaloop raised $13 million of a $30 million round in July to expand internationally. Rue La La has already exited, but if new ownership from Gilt or another suitor means the Boston-born company can grow even larger, we’re all for it.
