Gilt names former Martha Stewart chief as new CEO

Gilt Groupe Inc., which provides members with online access to designer clothing at up to 70 percent discounts, said Monday it has named Susan Lyne as chief executive effective immediately.

Lyne, 58, had served as president and CEO of Martha Stewart Living Omnimedia Inc. from November 2004 to July 2008.

She succeeds co-founder Alexis Maybank, who will become chief strategy officer.

Co-founder Alexandra Wilson remains chief merchandise officer.

Gilt Groupe, founded in November 2007, is among a growing number of companies that offer invitation only online private sales. Other rivals include ruelala.com and hautelook.com. Gilt Groupe offers men's, children's and women's clothing from about 100 designers ranging from Valentino to Diane Von Furstenberg and John Varvatos through its Web site, http://www.gilt.com. It conducts more than 10 sales weekly, and with more than 500 sales annually, the company hosts hundred of thousands of customers in what it says is a rapidly growing membership.

Lyne said in an interview with The Associated Press on Monday that she wants to build the site to become the pre-eminent brand in e-commerce through expansion into new categories. She noted that Gilt will beat its first-year sales forecast by fourfold and expects to exceed next year's forecast by another fourfold.

At Martha Stewart Living, Lyne had been instrumental in its recovery and return to profitability amid the personal legal problems of its namesake founder. Prior to joining Martha Stewart Living, Lyne spent eight years from 1996 to 2004 as an executive at The Walt Disney Co., principally at ABC where, as president of Entertainment, she oversaw the development of such hits as "Desperate Housewives," "Lost," "Grey's Anatomy," and "Extreme Makeover: Home Edition."