Group purchase website Gilt 250 million sold the shareholding employees losing option

Gilt: luxury sale

The old Canada

retail chain Hudson’s Bay in the beginning of this month, has been with the United States flash purchase group purchase website Gilt reached $250 million acquisition agreement, the acquisition process is expected to continue until February 1st. The move is considered to be an important step in the transformation of traditional retailers to the Internet electricity supplier.

Hudson’s Bay was founded in 1670, the first to open retail stores only in Toronto Canada, after decades of development, business across Canada also opened in Germany and the United States have a retail store, there are a number of retail brands, such as Lord Taylor and Saks Fifth & chains Avenue.

Gilt was founded in 2007, mainly through flash sales model luxury clothing sales, after nearly 9 years of development, now has a membership of 9 million. Hudson’s Bay after the acquisition of Gilt is expected to bring additional revenue of $500 million in fiscal year 2016.

but, although for this young Internet Co $250 million sounds quite lucrative, but the real benefit is only Gilt behind the capitalists, for through the option shareholding employees, the acquisition of action it is looted.

According to

Recode website reporter said, after the Gilt website came to be sold to Hudson’s Bay for $250 million, he has interviewed 6 former employees of Gilt, which has three employees in this deal, suffer the loss of at least $10 thousand.

this result is inevitably shocking. Although the option appears to be the shortcut options and build up the family fortunes, has always been the preferred means of start-up companies to attract talent. But in fact, if you buy a startup option, there is a risk of losing. Gilt is a very good example. Gilt is a flash buy started buying site, is one of the most famous U.S. buy site, which in 2012 when the peak value of more than $1 billion, can be described as hot. But after 35 years of development, with the Internet group purchase industry competition, and capital return to rational, the valuation of the company in the period of decline, expansion of purchase options for employees not only to earn money, but also a big devaluation of options.

actually in 2015 2 when the last round of financing there are signs. Gilt since the 2012 listing plan, until 2014, Gilt finally hired Goldman to achieve IPO dream, but unfortunately failed to do so. Gilt due to lack of profitability, and had to burn too fast, at the beginning of 2015.

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