Gilt Groupe Is Trying To Sell Off Its Unprofitable Jetsetter Business For $50 Million

Jetsetter

Gilt Groupe is trying to sell its travel sale site, Jetsetter, the Wall Street Journal reports.

The original asking price was “around $100 million” according to the Journal. The Journal says the price was whittled down to $50 million due to a lack of initial interest.

We’ve also learned that Jetsetter is for sale, but it wasn’t on the market in the 9-figure range. 

Earlier this year, Gilt shuttered its full-price fashion site for men, Park & Bond, and downsized its food site, Gilt Taste. It has also made a number of staffing cuts this year in an attempt to keep costs down and get IPO-ready.

Last year Gilt raised $138 million at a $1 billion valuation, and Gilt’s in a hurry to get profitable. Its IPO plans have been delayed until (possibly) 2013. 

Jetsetter was founded in 2009 and offered discounted vacation packages to shoppers, but it didn’t operate as cheaply as some of its competitors. In May, its CEO Drew Patterson departed.

We’ve reached out to Gilt for comment.

Disclosure: Kevin Ryan, Gilt Groupe’s CEO, is Chairman and co-founder of Business Insider.

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