One Kings Lane Will Cut up to 20 Percent of Its Staff
Just six months after landing a big round of investment that valued One Kings Lane at $900 million, the online home decor retailer is laying off between 75 and 100 people, according to a person familiar with the plans.
Some employees were notified of the cuts on Tuesday, this person said. The cuts will eliminate between 15 percent and 20 percent of the staff.
A One Kings Lane spokeswoman declined to comment.
In January, the online retailer announced a $112 million investment round led by Mousse Partners, bringing total funding to more than $220 million. The investment valued the San Francisco-based company at $912 million.
By April, the company announced that CEO Doug Mack was departing to run Fanatics, a sports e-commerce company. The company’s chief marketing officer and head of human resources also left at that time.
One Kings Lane’s CFO and COO Dinesh Lathi was named interim CEO and then permanent CEO.
Founded in 2009 by Susan Feldman and Ali Pincus, One Kings Lane sells a variety of furniture and home decor at discounts in time-restricted “flash sales.” Once a trendy business model, flash sales have lost some luster in recent years as heavily funded sites such as Fab and Ideeli have failed to live up to expectations. Others, like Gilt, have gotten back on track after layoffs, while kids flash site Zulily had a successful IPO late last year and has a current market cap of nearly $5 billion.
The company’s roster of investors also includes Scripps Networks Interactive, Kleiner Perkins, Institutional Venture Partners, Greylock Partners and Tiger Global Management.