American Express says Vente-Privee USA to close by year-end

Reuters News
Posted: Oct 27, 2014 5:31 PM

(Reuters) - American Express Co, the world's largest credit card issuer, said it would close its joint venture with French online start-up Vente-Privee by the end of the year.

Vente-Privee sells luxury fashion, wine and music at steep discounts in "flash sales" that last three to five days.

Vente-Privee began operating in the United States in 2011 in a joint venture with American Express to access an affluent client base of card holders, giving it instant credibility and brand recognition despite not being a household name outside Europe.

"Both companies decided that given the road to profitability for vente-privee USA was going to be longer than expected, it was time to focus on other priorities," American Express' spokeswoman Leah Gerstner said in an email.

Vente-Privee USA will continue to operate and fulfil its sales events and customer orders through the end of the year, the spokeswoman said.

Launched in 2001, Vente-Privee has grown fast and is now one of Europe's biggest homegrown online retailers, with a presence in France, Germany, Spain, Italy, the UK, Austria, Belgium and the Netherlands.

(Reporting By Neha Dimri in Bangalore)