The flash-sale retailer is using the funds for logistics, technology and growth, its CEO says. To support that growth, the company also appointed two retail veterans as chief operating officer and president and chief merchandising officer.
Canada-based flash-sale retailer Beyond the Rack, which sells apparel in the United States and Canada, has raised $25 million in funding. The funds will go towards logistics, technology and other areas, CEO Yona Shtern says.
Investissement Quebec, Iris Capital and Tandem Expansion Fund led the investment round. Also participating were Highland Capital Partners, Panorama Capital, BDC Venture Capital IT Fund and iNovia Capital.
“As a global investor we have broad exposure to e-commerce internationally and have been impressed by Beyond the Rack’s world-class, unit-level economics and operations,” says Alexander Wiedmer, a partner at Iris Capital. “It is ideally positioned to be an industry and market leader as e-commerce continues to expand in both Canada and the United States.”
Founded four years ago, Beyond the Rack has grown its consumer membership to 10 million, it says. It sells items from 5,000 brands and has offices in Montreal, Toronto, New York, and Las Vegas.
Along with the funding news, the retailer also announced it has appointed Mike Bhaskaran as chief operating officer and Jim Weinberg as president and chief merchandising officer. Bhaskaran most recently served for one year as vice president of global logistics for Starbucks Corp., according to his LinkedIn profile. Before that, from 2007 to 2012, he held senior transportation positions at Amazon.com Inc. and from 2003 to 2006 he was director of global logistics for Gap Inc., the profile says.
Weinberg was promoted to president and chief merchandising officer after spending four years as vice president and chief merchandising officer at Beyond the Rack, the company says. Prior to that, from 2008 to 2010, he served as senior vice president and general merchandising manager at Burlington Coat Factory, according to his Linkedin profile. From 2006 to 2008 he was group president designer alliance at fashion manufacturer Kellwood Co., and from 1996 to 2006 he was a senior vice president at department store chain Robinsons-May, Linkedin says.