The Really Strange Implosion Of BuyWithMe

Given the fact that the tech scene is pretty young, case studies aren’t really called for. But wait, because the tragedy of BuyWithMe (hey that rhymed) should serve as a lesson for anyone in the trenches. In fact, it would make a pretty good case study.

In an earlier post, BuyWithMe’s woes were recounted in a very factual manner:

BuyWithMe has let go of a hundred staff and could fold within a ridiculously short time. Bearing witness to such a tragedy should reinforce a cold, hard truth: Most startups fail. It’s almost a law of nature. This might also sound the death knell for daily deals sites as unconfirmed reports have arrived that other similar operations are shedding staff as well.

So the score is BuyWithMe went on an acquisitions frenzy and before anyone knew it, they downsized in a snap, then downsized again, then finally got bought by Gilt Groupe. Is there a mysterious fish smell emanating from this strange train of events?

A shocking part from the source that broke the news:

BuyWithMe will officially be part of Gilt starting Nov. 1. The remaining sales staff who were left after last week’s layoffs will be let go with one weeks pay. Gilt gets a lean company consisting largely of technology, a few executives, a large email list of customers and merchants partners in cities around the country.

The weird part is BuyWithMe was a key player in the daily deals leagues, just right behind Groupon and its closest competitor. Stay tuned for more scoops on this front.

Via: Betabeat