Seed Stage Slaughter

More Layoffs in Fashion Flash Sales Space, This Time at Rue La La [UPDATED]

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Earlier today, the Boston Business Journal broke the news that Rue La La, private shopping and flash sales site, was going to lay off nearly half of its 200-person staff and had already let go of 30 people today. Betabeat heard that across the country, local teams have closed their doors. Now the Boston Globe, has confirmation from the company that it is cutting 60 people from a staff of 550 people.

Rue La La, a Boston-based company founded in 2008, is operated by a parent company called Retail Convergence Inc. The Business Journal reported that Retail Convergence plans to close down SmartBargains.com, a separate discount site, and merge it into Rue La La. “They [Rue La La] certainly have a better brand than Smartbargains,” noted Fashism founder Brooke Mooreland when reached for comment.

The company told the Globe, that it plans on “outsourcing our sales force and consolidating SmartBargains.com into Rue La La…These moves unfortunately resulted in the elimination of some staff positions.” Read More