US-based invitation-only online shopping company RueLaLa issued $22m in stock options to 14 of its executives, according to a filing made with the US Securities & Exchanges Commission on Thursday.
RueLaLa was previously a part of ecommerce platform GSI Commerce. When GSI was acquired by eBay in June last year, 70% of RueLaLa and retail base ShopRunner, together with all of sporting merchandise seller Fanatic, were divested into a new holding company, Kynetic, to be run by GSI’s former chief executive, Michael Rubin.
In return, eBay agreed to loan Kynetic $467m with Rubin to invest $31m in equity.
The filing comes less than two weeks after RueLaLa made about 60 employees, around 12% of its total workforce, redundant. The redundancies were part of a reorganisation that will see online retailer SmartBargains.com, acquired by RueLaLa in 2009, fully absorbed into its parent company.