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	<title>Betabeat &#187; Hungover After an Expansion Bender, Lot18 Pulls Out of the U.K., Lays Off Six</title>
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		<title>Betabeat &#187; Hungover After an Expansion Bender, Lot18 Pulls Out of the U.K., Lays Off Six</title>
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		<title>Hungover After an Expansion Bender, Lot18 Pulls Out of the U.K., Lays Off Six</title>

		<comments>http://betabeat.com/2012/07/lot-18-shutters-uk-business-6-laid-off/#comments</comments>
		<pubDate>Thu, 19 Jul 2012 17:51:47 -0400</pubDate>
					<link>http://betabeat.com/2012/07/lot-18-shutters-uk-business-6-laid-off/</link>
			<dc:creator>Jessica Roy</dc:creator>
				
		<guid isPermaLink="false">http://betabeat.com/?p=55334</guid>
		<description><![CDATA[<p><div id="attachment_55356" class="wp-caption alignleft" style="width: 210px"><a href="http://nyobetabeat.files.wordpress.com/2012/07/pj-photo.jpeg"><img class="size-full wp-image-55356" title="pj-photo" src="http://nyobetabeat.files.wordpress.com/2012/07/pj-photo.jpeg" alt="" width="200" height="298" /></a><p class="wp-caption-text">Mr. James (Photo: Lot 18)</p></div></p>
<p>Yesterday, <a href="http://www.lot18.com/">Lot18</a>--the members-only site for flash sales of wine--announced in a <a href="http://12x75.com/lot18-closing-uk-operations/">statement</a> distributed to wine industry publications that it will permanently shutter its U.K. operations, effective at the end of the week. That includes laying off six full-time employees.</p>
<p>Apparently, British oenophiles are hard customers to come by these days.</p>
<p>The statement explains the closing: "The supermarkets’ stranglehold on the UK market proved too powerful for us to compete with and we have not experienced the anticipated growth rate."</p>
<p>For those keeping score at home, this is not the first time Lot18 has dropped the axe on a significant number of employees. Back in January, the luxe startup <a href="http://betabeat.com/2012/01/layoffs-at-lot18-philip-james/">let go</a> of 15 percent of its staff--its first stumble following an explosive expansion. At the time, Lot18 CEO Philip James told Betabeat, "A lot of this is a natural part of the way a business grows and evolves." Think he's currently eating--or perhaps swigging--his words?</p>
<p><!--more-->Then, in May, Mr. James (in what a source called "a show of bravado") began straight-up <a href="http://betabeat.com/2012/05/lot18-founder-offered-to-pay-unhappy-employees-to-quit-today-and-six-of-them-did/">paying</a> unhappy employees to leave, following the <a href="http://www.businessinsider.com/lot18-shuts-down-gourmet-and-experiences-2012-5">shuttering</a> of its gourmet and lifestyle brands. Seven employees were reportedly so dissatisfied that they took the money and ran. “Lot18 seems to be imploding and the only non-disgruntled employees there are the new ones," one source told us at the time. "Again, from what I hear you can cut the tension with a knife over there right now.”</p>
<p>Finally, just last month, came another blow to the epicurean e-commerce company. Lot18 once again <a href="http://betabeat.com/2012/06/wine-site-lot18-culls-11-employees-plans-to-wind-down-food-travelverticals/">announced</a> sweeping layoffs, firing 11 of its employees and cutting its food and travel verticals. Mr. James chalked the move up to the fact that the company, which has raised a total of $44.5 million <a href="http://www.crunchbase.com/company/lot18">according</a> to Crunchbase, got a little trigger-happy with their cash: "One of the perils of having a lot of money is it's easy to launch a lot of things," he told Betabeat.</p>
<p>The closing of the 4-month-old U.K. operation may be another attempt for the company to return to its "core offering...changing the wine business," as Mr. James <a href="http://betabeat.com/2012/06/wine-site-lot18-culls-11-employees-plans-to-wind-down-food-travelverticals/">told</a> Betabeat back in June. And perhaps Lot18's platform--with its built-in compliance with local liquor laws--wasn't as disruptive in the U.K, which lacks America's patchwork 50-state market.</p>
<p>Lot18 will still continue to operate in the U.S. as well as France, where it acquired Paris-based Vinobest in December. We can imagine it's a little easier to build upon an already-established business than start from scratch.</p>
<p>Does this signal the end of Lot18's scaling back, or can we expect more layoffs at its U.S. operations? We'll keep an ear to the ground.</p>
<p>Lot 18 declined to comment.</p>
<p>If you have any more information, drop us a line: tips [at] betabeat [dot] com.</p>
<p><em>Additional reporting by Kelly Faircloth.</em></p>
]]></description>
		<content:encoded><![CDATA[<p><div id="attachment_55356" class="wp-caption alignleft" style="width: 210px"><a href="http://nyobetabeat.files.wordpress.com/2012/07/pj-photo.jpeg"><img class="size-full wp-image-55356" title="pj-photo" src="http://nyobetabeat.files.wordpress.com/2012/07/pj-photo.jpeg" alt="" width="200" height="298" /></a><p class="wp-caption-text">Mr. James (Photo: Lot 18)</p></div></p>
<p>Yesterday, <a href="http://www.lot18.com/">Lot18</a>--the members-only site for flash sales of wine--announced in a <a href="http://12x75.com/lot18-closing-uk-operations/">statement</a> distributed to wine industry publications that it will permanently shutter its U.K. operations, effective at the end of the week. That includes laying off six full-time employees.</p>
<p>Apparently, British oenophiles are hard customers to come by these days.</p>
<p>The statement explains the closing: "The supermarkets’ stranglehold on the UK market proved too powerful for us to compete with and we have not experienced the anticipated growth rate."</p>
<p>For those keeping score at home, this is not the first time Lot18 has dropped the axe on a significant number of employees. Back in January, the luxe startup <a href="http://betabeat.com/2012/01/layoffs-at-lot18-philip-james/">let go</a> of 15 percent of its staff--its first stumble following an explosive expansion. At the time, Lot18 CEO Philip James told Betabeat, "A lot of this is a natural part of the way a business grows and evolves." Think he's currently eating--or perhaps swigging--his words?</p>
<p><!--more-->Then, in May, Mr. James (in what a source called "a show of bravado") began straight-up <a href="http://betabeat.com/2012/05/lot18-founder-offered-to-pay-unhappy-employees-to-quit-today-and-six-of-them-did/">paying</a> unhappy employees to leave, following the <a href="http://www.businessinsider.com/lot18-shuts-down-gourmet-and-experiences-2012-5">shuttering</a> of its gourmet and lifestyle brands. Seven employees were reportedly so dissatisfied that they took the money and ran. “Lot18 seems to be imploding and the only non-disgruntled employees there are the new ones," one source told us at the time. "Again, from what I hear you can cut the tension with a knife over there right now.”</p>
<p>Finally, just last month, came another blow to the epicurean e-commerce company. Lot18 once again <a href="http://betabeat.com/2012/06/wine-site-lot18-culls-11-employees-plans-to-wind-down-food-travelverticals/">announced</a> sweeping layoffs, firing 11 of its employees and cutting its food and travel verticals. Mr. James chalked the move up to the fact that the company, which has raised a total of $44.5 million <a href="http://www.crunchbase.com/company/lot18">according</a> to Crunchbase, got a little trigger-happy with their cash: "One of the perils of having a lot of money is it's easy to launch a lot of things," he told Betabeat.</p>
<p>The closing of the 4-month-old U.K. operation may be another attempt for the company to return to its "core offering...changing the wine business," as Mr. James <a href="http://betabeat.com/2012/06/wine-site-lot18-culls-11-employees-plans-to-wind-down-food-travelverticals/">told</a> Betabeat back in June. And perhaps Lot18's platform--with its built-in compliance with local liquor laws--wasn't as disruptive in the U.K, which lacks America's patchwork 50-state market.</p>
<p>Lot18 will still continue to operate in the U.S. as well as France, where it acquired Paris-based Vinobest in December. We can imagine it's a little easier to build upon an already-established business than start from scratch.</p>
<p>Does this signal the end of Lot18's scaling back, or can we expect more layoffs at its U.S. operations? We'll keep an ear to the ground.</p>
<p>Lot 18 declined to comment.</p>
<p>If you have any more information, drop us a line: tips [at] betabeat [dot] com.</p>
<p><em>Additional reporting by Kelly Faircloth.</em></p>
]]></content:encoded>
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