Ript is shopping into hyper apparel retailer Hyper and the deal would make it one of the largest apparel retailers in the world, according to people familiar with the matter.
The acquisition is expected to close in the first quarter.
The deal would also allow Ript to expand its portfolio of high-quality products and provide Hyper with an additional source of revenue, said one of those people, who asked not to be identified discussing the private transaction.
Hyper, which has operations in a variety of countries, has been struggling to compete with Amazon and other online retailers in a world that is becoming increasingly digitized.
The company reported net income of $1.8 million in the fiscal second quarter and expects to post a profit of $4 million in its next fiscal year.
The purchase of Hyper would allow Rips to take on more of the retailer’s inventory and expand its selection of high quality apparel and accessories.
The retailer has been battling to maintain profitability after it announced a $5.7 billion bankruptcy in March and has struggled to gain traction with its consumers.
The retail giant has struggled as it has tried to grow online shopping.
It has had to contend with an increasing number of customers switching to Amazon’s shopping platform as a result of increased competition from other retailers.
Amazon, which is owned by Amazon.com Inc., has long struggled with the challenge of creating a viable e-commerce business.
The e-tailer recently announced it would buy rival Snap Inc. for $1 billion.
Ript had revenue of $547 million in fiscal 2016.
The group, which includes companies including the online apparel retailer and fashion retailer, is also developing a new clothing line.
Hyper has seen an increase in customers and revenue.
The online apparel company has seen sales increase more than 30 percent to $3.9 billion in fiscal 2017, according on its latest earnings call with analysts.
In the first half of this year, sales rose 26 percent to more than $1 trillion, with more than half of that growth coming from online purchases.
Hyper saw sales increase by 12 percent in the same period.
Rips has struggled since Amazon announced a bankruptcy last month, citing “unprecedented” cost pressures that the retailer faces.
The bankruptcy has forced it to slash about 3,200 jobs and has forced its suppliers to close stores, according Ript Chief Executive Officer Mike Zalewski.
Rippes has seen strong online growth and has been looking for a way to get back into the online retail space.
It was also one of Amazon’s largest customers, accounting for about 13 percent of its total e-shop revenue in fiscal 2018.
The companies have not yet agreed to terms of the deal, which could close as early as Tuesday.
Hyper is also looking to increase its online presence.
The Hyper online store has about 2 million active customers, Zalewski said in the call.
“I can assure you we will continue to build the Hyper brand and we look forward to a very fruitful future together,” Zalewski said.
Ripped has about 4 million active subscribers on the website, and Zalwiski said that the group has a “pretty strong digital presence” as well.
“It’s going to be a very exciting time for the company,” Zilwisky said.
The new purchase is expected close to the end of the quarter, one of these people said.
Hyper recently reported net loss of $0.8 billion, or $0 and $0 per share, in the second quarter.
Its stock fell 6 percent to a price of $30.30 on Wednesday.