- Japanese e-commerce company Rakuten Inc (OTCMKTS: RKUNY) has decided to shut down its U.S. online retail store operations (previously known as Buy.com)
Japanese e-commerce company Rakuten Inc (OTCMKTS: RKUNY) has decided to shut down its U.S. online retail store operations (previously known as Buy.com). The shutdown will occur over the next two months, according to TechCrunch.
This shutdown will lead to layoffs at the company’s US headquarters, which affects about 87 people says TechCrunch’s source.
“We have decided to sunset the U.S. Rakuten Marketplace,” said the Rakuten company representative via TechCrunch.
Going forward, the “cash back rewards” referral service will continue as that operation is “stronger than ever.” Rakuten developed this service after acquiring Ebates for $1 billion in 2014.
Rakuten had acquired Buy.com for $250 million in 2010 in order to build up its e-commerce operations outside of Japan. However, business started to decline due to aggressive competition from other e-commerce players. And likely there was consumer confusion after Buy.com was branded under the Rakuten name.
For the next two months, Rakuten customers will be able to place orders. But the site will be completely shutdown after that.