April 2, 2012, 12:19 PM

Rue La La bulks up on warehouse space

The flash-sale e-retailer takes over the lease of a 400,000-square-foot warehouse near a UPS hub.

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Flash sale online retailer Rue La La has taken over the lease of a 400,000-square-foot warehouse near the main U.S. air hub for United Parcel Service Inc.

Rue La La had used the warehouse when the e-retailer was part of GSI Commerce, which eBay Inc. bought last year. EBay, however, divested part of GSI, including Rue La La. Following the eBay deal, Rue La La outsourced its fulfillment operations to the GSI unit that was now part of eBay, a Rue La La spokeswoman says.

Rue La La’s use of the warehouse, which is near Louisville, KY, was part of a nine-month transition plan for Rue La La to take over the warehouse, she says. Rue La La did not disclose terms of the deal.

“When GSI owned Rue La La all of Rue’s shipping was done out of this facility,” the spokeswoman says. Eight other businesses that also used the warehouse when GSI operated it have relocated to other warehouses, she says.

The acquisition adds 175 employees to Rue La La’s staff, increasing the total number of employees to more than 500. Rue La La is part of Kynetic LLC, a company formed by GSI founder and former chief executive Michael Rubin  that also includes the ShopRunner shipping program and a group of sports apparel sites operated under Kynetic’s Fanatics unit.

 

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