Struggling BuyWithMe may live on as unit of Gilt, report says
Acquisition terms weren't disclosed, but clothing retailer Gilt is expected to swallow the daily-deals site on November 1.
Daily-deals provider BuyWithMe has been sold off to Gilt Groupe, BetaBeat is reporting.
According to the blog, neither party divulged the terms of the acquisition. The companies expect to combine forces on November 1. Gilt expects to layoff some BuyWithMe sales staff and provide them with one week's pay as a severance, BetaBeat's sources say.
Unfortunately for BuyWithMe, layoffs have become commonplace at the company. Just last week, the company laid off over half of its staff, or about 100 people, due to its continued inability to compete effectively against Groupon and LivingSocial. According to BetaBeat, sales staff that survived the layoffs were also asked to take a 25 percent pay cut.
Gilt Groupe and BuyWithMe are quite different companies. The former provides heavily discounted designer clothes and goods to its customers, while BuyWithMe offers traditional daily deals to customers around the U.S. That said, with the BuyWithMe purchase, Gilt Groupe might be able to expand its reach across the U.S. and grow out of its current niche market.
Gilt Groupe declined to comment on the BetaBeat report. BuyWithMe did not immediately respond to CNET's request for comment.