ShoeDazzle Will Lay Off Up To 52 Employees Following Merger With JustFab

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ShoeDazzle, a fashion e-commerce company founded by Brian Lee and Kim Kardashian, sold to a competitor called JustFab earlier this year.  Now ShoeDazzle will be laying off as many as 52 employees in Los Angeles by the end of December.  ShoeDazzle selects and sends subscribers fashion items for a monthly fee.  The company made a filing with the State of California that says 52 positions will be eliminated, mostly in customer service.

“The number will most likely be less by the end of December as we are actively seeking to find other placement within the organization,” stated Kimberly Tobman, vice president of public relations and corporate communications at JustFab.  The layoffs are happening mostly because the positions were redundant at both companies.

Following the merger in August, JustFab and ShoeDazzle had a combined 500 employees.  No additional layoffs are planned.

ShoeDazzle’s team moved to JustFab’s offices in El Segundo, California from Santa Monica three weeks ago.  The combined company will move to a larger office space next year and will operate as separate brands.

ShoeDazzle launched in 2009 and received funding from Andreessen Horowitz, Lightspeed Venture Partners, Polaris Partners, and Crosscut Ventures.  The company had a valuation of $240 million at one point.  However, ShoeDazzle sold at a loss to the venture investors.  The two brands have a combined 33 million subscribers as of August.  JustFab raised $40 million in a new round of funding recently from investors such as Matrix Partners, Rho Ventures, Technology Crossover Ventures, and Intelligent Beauty.

[Source: WSJ]

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