Rue Gilt Groupe, an e-commerce retailer, is in the early stages of preparing for an initial public offering, according to people with knowledge of the matter.
The company, led by Chief Executive Officer Mark McWeeny, is working with underwriters ahead of a U.S. public-market debut, said one of the people, who asked not to be identified discussing private plans.
Rue Gilt Groupe seeks “to provide the most engaging online, off-price style destinations connecting world-class premium and luxury brands to the next-generation shopper,” according to its website. Its key sites, Rue La La and Gilt, feature more than 5,000 luxury and premium brands and offer discounts of as much as 70% off full-price retail. It reaches a “highly coveted” demographic, its website shows.
In 2019, Simon Property Group Inc. said it had acquired a 50% stake in the business, which is backed by billionaire Michael Rubin, for $280 million. Simon and Rue Gilt Groupe operate ShopPremiumOutlets.com, another off-price e-commerce site.
At the time, Rue Gilt Groupe said it had more than 25 million members and was on track to surpass $1 billion in annual sales. A year earlier, in 2018, Rue La La agreed to acquire Gilt from Hudson’s Bay Co.
A spokesperson for Rudin referred questions to Rue Gilt Groupe, and representatives for Simon and Rue Gilt Groupe didn’t respond to requests for comment.
By Katie Roof and Gillian Tan
From stalwarts like T.J. Maxx and Nordstrom Rack to venture-backed newcomers and online luxury resellers, a multitude of discount retailers are all vying for a piece of the growing off-price market, which will thrive amid the lingering global recession.