UPDATED 09:02 EST / OCTOBER 26 2010

Gilt City Acquires Bergine, a Fashionable First

Chicago-based Gilt City does another major step in expanding verticals with the acquisition of San Francisco-based luxury deal site Bergine.com.

Located in the east coast, the acquisition will make it easy for Gilt City to expand in the west coast, as Bergine already has a great deal of existing customers and has established a reputation for itself. It also has partnerships with in-demand restaurants, spas and the like around its area.

“With our company’s exciting first acquisition, Gilt Groupe continues to show our commitment to making Gilt City the premier brand for curated local services at exclusive prices,” said Kevin Ryan, CEO of Gilt Groupe Inc. “Bergine shares our core philosophy of carefully selecting the highest quality local experiences — and then providing members amazing prices for these luxury opportunities.”

Bergine co-founder Patricia Calfee will supervise operations in the west coast.

“I’m thrilled Patricia Calfee and her outstanding team will now be running Gilt City’s West Coast operations. Their commitment to delighting customers and ensuring vendor satisfaction aligns perfectly with Gilt City,” said Nate Richardson, president of Gilt City.

While Bergine has a standing in the west coast, Gilt City is also a big name in the east coast, an opportunity for Bergine to scale larger.

Gilt City is under Gilt Groupe, a company focused on sought-after products at insider prices. This includes apparel, accessories and lifestyle products for women, men and children, home entertaining and decor as well as travel. Deals starts at 9pm and lasts for 36 hours to a week.  In all, this is another way for Gilt to expand its verticals, which have included travel, wedding and localized flash sales in the past several months.

Competitors in and outside of the fashion industry have hopped on the local bandwagon, including LivingSocial.  Other fashion-centric services like Polyvore have been expanding verticals in other ways, lending metrics to marketers, brands and retailers as well.


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