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	<title>Betabeat &#187; That $22 M. SEC Filing from Rue La La? That Wasn&#8217;t New Funding [UPDATED]</title>
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		<title>Betabeat &#187; That $22 M. SEC Filing from Rue La La? That Wasn&#8217;t New Funding [UPDATED]</title>
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		<title>That $22 M. SEC Filing from Rue La La? That Wasn&#8217;t New Funding [UPDATED]</title>

		<comments>http://betabeat.com/2012/01/rue-la-la-cut-60-employees-and-raised-22-m-at-the-same-time/#comments</comments>
		<pubDate>Fri, 20 Jan 2012 13:45:40 -0400</pubDate>
					<link>http://betabeat.com/2012/01/rue-la-la-cut-60-employees-and-raised-22-m-at-the-same-time/</link>
			<dc:creator>Adrianne Jeffries</dc:creator>
				
		<guid isPermaLink="false">http://www.betabeat.com/?p=27179</guid>
		<description><![CDATA[<p><div id="attachment_27181" class="wp-caption alignleft" style="width: 234px"><img class="size-full wp-image-27181" title="rue la la" src="http://nyobetabeat.files.wordpress.com/2012/01/rue-la-la.jpg" alt="" width="224" height="151" /><p class="wp-caption-text">Rue La La elves Firing, Hiring and Funded.</p></div></p>
<p>News of layoffs at flash fashion startup <a href="http://ruelala.com">Rue La La</a> leaked last week: <a href="http://www.betabeat.com/2012/01/12/layoffs-and-restructuring-at-fashion-flash-sales-site-rue-la-la/">60 people of the company's 550-strong workforce</a> had to be made redundant. But an <a href="http://techcrunch.com/2012/01/20/after-laying-off-60-people-ruelala-raises-22-million/">SEC filing unearthed by TechCrunch</a> today shows an odd contradiction: Rue La La just <a href="http://sec.gov/Archives/edgar/data/1422906/000142290612000002/xslFormDX01/primary_doc.xml">raised $22 million</a>. <strong>UPDATE: </strong>The <a href="http://sec.gov/Archives/edgar/data/1422906/000142290612000002/xslFormDX01/primary_doc.xml">filing</a> is not new money, Rue La La says, but rather a valuation filed as part of Rue La La's equity plan, putting a dollar figure on equity and options that had already been issued.<br />
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<p>Despite the layoffs, Rue La La is hiring for more than a dozen positions, <a href="http://hire.jobvite.com/CompanyJobs/Careers.aspx?c=qL79VfwG&amp;cs=9sI9VfwY">according to its website</a>. That echoes the situations at members-only flash sales analogues Gilt Groupe and Lot18, both of which recently announced layoffs but insisted they were still hiring and would be back at full headcount within months.</p>
<p>Our best guess is that the Boston-based company will be waiting before it fills those open positions—although even after they're filled, the company will still be leaner than it was before the layoffs.</p>
<p>Rue La La has been through several byzantine twists of funding, starting out as a property under venture-backed Retail Convergence which was acquired by Pennsylvania-based GSI Commerce in 2009, which was acquired in turn by eBay. Rue La La <a href="http://www.masshightech.com/stories/2012/01/09/daily41-Sources-Rue-La-La-parent-Retail-Convergence-lays-off-65-closes-SmartBargains.html">reportedly received $500 million</a> in debt and equity financing as part of the deal. Retail Convergence was then spun out as a subsidiary with eBay retaining 30 percent ownership.<del> If the company already burned through $500 million and suffered through a series of management changes, we can understand why investors would want Rue La La to get a little leaner.</del></p>
]]></description>
		<content:encoded><![CDATA[<p><div id="attachment_27181" class="wp-caption alignleft" style="width: 234px"><img class="size-full wp-image-27181" title="rue la la" src="http://nyobetabeat.files.wordpress.com/2012/01/rue-la-la.jpg" alt="" width="224" height="151" /><p class="wp-caption-text">Rue La La elves Firing, Hiring and Funded.</p></div></p>
<p>News of layoffs at flash fashion startup <a href="http://ruelala.com">Rue La La</a> leaked last week: <a href="http://www.betabeat.com/2012/01/12/layoffs-and-restructuring-at-fashion-flash-sales-site-rue-la-la/">60 people of the company's 550-strong workforce</a> had to be made redundant. But an <a href="http://techcrunch.com/2012/01/20/after-laying-off-60-people-ruelala-raises-22-million/">SEC filing unearthed by TechCrunch</a> today shows an odd contradiction: Rue La La just <a href="http://sec.gov/Archives/edgar/data/1422906/000142290612000002/xslFormDX01/primary_doc.xml">raised $22 million</a>. <strong>UPDATE: </strong>The <a href="http://sec.gov/Archives/edgar/data/1422906/000142290612000002/xslFormDX01/primary_doc.xml">filing</a> is not new money, Rue La La says, but rather a valuation filed as part of Rue La La's equity plan, putting a dollar figure on equity and options that had already been issued.<br />
<!--more--></p>
<p>Despite the layoffs, Rue La La is hiring for more than a dozen positions, <a href="http://hire.jobvite.com/CompanyJobs/Careers.aspx?c=qL79VfwG&amp;cs=9sI9VfwY">according to its website</a>. That echoes the situations at members-only flash sales analogues Gilt Groupe and Lot18, both of which recently announced layoffs but insisted they were still hiring and would be back at full headcount within months.</p>
<p>Our best guess is that the Boston-based company will be waiting before it fills those open positions—although even after they're filled, the company will still be leaner than it was before the layoffs.</p>
<p>Rue La La has been through several byzantine twists of funding, starting out as a property under venture-backed Retail Convergence which was acquired by Pennsylvania-based GSI Commerce in 2009, which was acquired in turn by eBay. Rue La La <a href="http://www.masshightech.com/stories/2012/01/09/daily41-Sources-Rue-La-La-parent-Retail-Convergence-lays-off-65-closes-SmartBargains.html">reportedly received $500 million</a> in debt and equity financing as part of the deal. Retail Convergence was then spun out as a subsidiary with eBay retaining 30 percent ownership.<del> If the company already burned through $500 million and suffered through a series of management changes, we can understand why investors would want Rue La La to get a little leaner.</del></p>
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