Failure – Gilt Groupe
- Current Company Value: SOLD OFF
Gilt Groupe began as an interesting start-up known for major flash sales on various products. After launching in 2007, Gilt was able to take its online shopping method even further by becoming sort of a lifestyle website as well. They even launched several women’s and men’s clothing items that expanded from 2007 to 2011 from just clothing to home decor, travel, food, and much more. The company even bought up Bergine, a deal of the day website. By 2011, they were valued at $1 billion but would soon start to unravel around the time the company decided to go public.
This is when the company’s value would truly be tested. Yet the IPO, for some reason, kept getting delayed and it ended up never happening. By 2015, Gilt began raising money at a much lower valuation than its $1 billion paper value. They also had to start downsizing as they overextended themselves after their massive growth took place. Lack of focus resulted in major issues, leading to the sale of their full-price retail, travel, and food categories at a loss. Gilt then sold off to the long-running Hudson’s Bay Company for $250 million. HBC owns the Saks Fifth Avenue and, of course, Hudson’s Bay stores.