Struggling Canadian retailer Hudson's Bay Co. (HBC) agreed to sell Gilt, a flash-sale, e-commerce company it bought two years ago that has become one of its worst-performing businesses. HBC had hoped Gilt would accelerate its online sales, but failed to revive it even after combining inventories with its other discount business, Saks OFF 5TH. HBC will now focus on its core business of running department stores.

Gilt was acquired by off-price online retailer Rue La La. The combined company, operating under the newly formed Rue Gilt Groupe, joins two complementary lifestyle brands into a multi-brand growth platform. After merging, the companies are slated to reach $1 billion in sales. Both brands will continue to operate independently, retaining their unique identities and serving distinct customer segments.

press release on hudson's bay selling gilt