Hudson's Bay in talks to acquire Gilt

Hudson's Bay (TSE:HBC), owner of Saks Fifth Avenue and Lord & Taylor, is in talks to acquire fashion e-commerce site Gilt for $250 million, according to The Wall Street Journal.

One of the original flash sale sites, Gilt sells luxury apparel at discounted prices and showcases different items each day.

Gilt could be grouped with Saks's retail outlet, Off Fifth, TechCrunch reported. In addition, there is talk that Gilt might expand its brick-and-mortar presence. Currently, the brand has a physical showroom in New York. Gilt by Appointment invites members into the showroom to try on and shop apparel, shoes and accessories.

And the acquisition could benefit struggling Hudson's Bay as well. The company recently reported that the stronger U.S. dollar and a decline in tourist spending are taking their toll on Saks and Saks Off Fifth. And when it comes to digital, Gilt is making great strides. As of October, Gilt Groupe reported that more than 50 percent of its revenue was coming from mobile.

Gilt has raised about $300 million in financing and was valued at $1.1 billion in 2011.

The possible deal comes almost a year after Groupon bought rival Ideeli.com for $43 million. And similarly, Nordstrom acquired HauteLook for $270 million in 2011.

For more:
-See this TechCrunch article

Related stories:
Hudson's Bay performing well in Canada, hit hard in US
Saks expands Off 5th locations in Canada
Off 5th expands in New York
Hudson's Bay, fastest growing retailer in US
Hudson's Bay to cut 265 jobs from corporate, consolidating IT

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