Flash sales giant Gilt Groupe is acquiring the troubled daily deals startup BuyWithMe, which recently saw over half its staff laid off after the company failed to raise the funding it needed to survive. Beginning November 1st, BuyWithMe will officially become a part of Gilt, according to a report from BetaBeat, which has been covering the BuyWithMe saga for the past couple of weeks.
The remaining sales staff left at the end of last week’s layoffs (staff who already took at 25% pay cut), will be let go, reports BetaBeat, which has been speaking with current and former BuyWithMe employees about the matter. Gilt will then gain BuyWithMe’s technology, customer email list, merchant partners and a few executives.
Employees questions about unvested stock options were not answered on a company-wide conference last night, says the report.
Gilt Groupe declined to comment on the matter.
BuyWithMe laid off half its workforce last week, after having been unsuccessful in its attempts to buy its way to growth�by acquiring other daily deals players.�The company made its sixth acquisition in September, with�its purchase of San Francisco-based TownHog�. It�previously acquired NYC's�Scoop St,�Chicago deals site DealADayOnline,�San Francisco deals site Swoop,�loyalty company Edhance, and�deals site LocalTwist. It raised $30 million from Bain Capital Ventures and Matrix Partners.
Matrix Partners is also an investor in Gilt.
Headquartered in New York, Gilt Groupe is a privately held company dedicated to providing its members with access to coveted fashion and luxury lifestyle brands at sample sale prices. Gilt Groupe includes sales for men, women, and home as well as Gilt City (geo-specific), Gilt Taste (food), and Jetsetter (travel).
Gilt Groupe hand selects both established and up and coming brands relevant to its membership base. Each Gilt Groupe Shopping Event is designer-specific and held over a one day...
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BuyWithMe is the premier group buying website where leading local merchants offer exclusive limited time offers to members of the BuyWithMe community.
Through the power of its numbers, BuyWithMe negotiates handpicked group discounts for its customers to access at spas, restaurants, health clubs, bars and other local activities in their city. BuyWithMe currently publishes daily deals in 12 major DMAs, including Austin, Boston, Chicago, Dallas, Houston, Los Angeles, Philadelphia, Phoenix, New York, and San Diego.
BuyWithMe is...
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