After 7-years of online retail, it looks like Beyond the Rack is in a trouble. The Montreal-based company behind the e-commerce flash-sale store recently obtained court protection from creditors and are now on the hunt for a buyer.

To date, Beyond the Rack owes $44.3 million including $6.8 million in outstanding customer orders. Despite database claims of 14 million subscribers and 450,000 active shoppers, the “private shopping club” has never turned a profit.

While it’s sad to see the Canadian subsidiary of Beyond the Rack struggle, it’s not the first time we’ve seen a website with flash-sale structure come to an end. A similar Canadian company called Peacock Parade made the switch to full-time e-commerce after struggling with limited time offers and the online menswear store, JackThreads, pivoted away from the model after feeling their off-price flash-sale structure had lost its appeal.

So has the interest in flash sale techniques & limited time gone south or is it down to the survival of the fittest? Beyond the Rack’s CEO Yona Stern seems to think the later, stating that, “many of [their competitors] have recently been acquired and have merged with traditional brick-and-mortar retail strategic partners.”

And it’s true. saw their worth drop from $1 billion to $250 million prior to their acquisition by Hudson’s Bay and HauteLook has continued to strive since their acquisition by Nordstrom. Only time can tell if the end of Beyond the Rack is coming. Their court protection runs until April 22nd, afterwards they can apply for an extension.

We’ll keep you updated as more information becomes available.

Do you think this is the end of Beyond the Rack?

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Featured image via @SamanthaCutler
  • fulanomengano

    Their products’ information is very vague and the sizing very confusing. The opposite of what should be for a company that only sales products online. Specially since they don’t offer free returns. So many times I refrain from buying something from them because I was not sure of what I was going to get. I mentioned this several time in their surveys, but it didn’t seem to be noticed. I used to buy about $2K/year from them, now I rarely buy anything.

  • Rose Power

    I started buying from BTR from its inception. The bigger they got the junkier their website became. Granted they wanted to appeal to a bigger (read American) market so they tried to offer a huge amount of goods. I did, at the outset, get some really great deals but there are so many other flash websites that offer better deals. A shame really – I try to shop Canadian but in this case I won’t risk buying from them anymore.

  • Tennika Samuels

    I totally love BTR. Love the cheap products. shipping is quite slow. Customer service is amazing but their return policy isn’t good on furniture. I have been buying from BTR from the beginning and I hate to see them go. Love, love, love their bedding and paintings. I like the fact I could use my debit card on their site as well for my online purchases. To me they were like on online Homesense or Marshall’s. I didn’t think they would ever go under. What is happening in the world? Mexx, Target, Gap, Laura, Reitmans, Sears, Jacob, Danier Leather, Nine West are all closed or closing down. They say their competitors are Zara and H and M? But I don’t even see how these places are staying in business. They aren’t fashionable by any means. The quality is very poor and I do not shop at these places.

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