Rue Gilt Groupe, the popular e-commerce discount retailer, is reportedly gearing up for a highly anticipated initial public offering (IPO) in the United States. Backed by billionaire Michael Rubin and led by CEO Mark McWeeny, the company is said to be collaborating with underwriters to prepare for its debut on the U.S. stock market.

The journey to an IPO has been quite eventful for Rue Gilt Groupe. In 2018, it was acquired by e-commerce flash sale site Rue La La, following a previous purchase by Hudson’s Bay Company (HBC) just two years earlier. Rue La La acquired Gilt for less than $100 million, a significant decrease from its 2011 valuation of $1 billion. HBC had bought Gilt for $250 million in 2016.

Despite the twists and turns, both Rue La La and Gilt continue to operate independently under the newly formed Rue Gilt Groupe. In 2019, the largest shopping mall operator in the nation, Simon Property Group, acquired a 50% stake in the business for $280 million. This acquisition showcased the company’s determination to bring outlet shopping into the online realm.

At the time of the acquisition, Rue Gilt Groupe boasted a membership of over 25 million and was expected to surpass $1 billion in annual sales. Expanding on their success, the company teamed up with Simon Property Group to launch, a platform where shoppers can find discounted products from numerous brands.

If Rue Gilt Groupe proceeds with its IPO, it will join a growing number of e-commerce companies that have recently filed for public offerings. Notable examples include Poshmark, ThredUp, Dr Martens, and The RealReal. These companies’ choices to go public demonstrate the strong investor interest in the e-commerce sector and the potential for substantial growth and profitability in the industry. As the IPO process for Rue Gilt Groupe unfolds, all attention will be focused on this discount retailer as it enters the public market.

Useful links:
1. Rue La La
2. Simon Property Group