Thrasio, an early leader in Amazon aggregator giants, set up a booth at the popular Prosper show for Amazon sellers on July 14, 2021 in Las Vegas, Nevada.
katie schoolloff
Thrasio, an early leader in Amazon’s seller aggregation, filed for Chapter 11 bankruptcy protection in a New Jersey court on Wednesday.
The company announced that it has reached an agreement with its lenders to reduce its debt burden by approximately $495 million. Thrasio said certain creditors have committed to providing up to $90 million in new capital, which will go toward ongoing operations and allow brands in the portfolio to continue operating. It is said that it will be possible.
“Thrasio is one of the largest third-party sellers on the Amazon Marketplace, and with its strengthened balance sheet and new capital, we are positioned to support our brands, expand our infrastructure, and realize future opportunities. ” said Greg Greeley, CEO of Thrasio. In a statement.
Thrasio and other Amazon aggregators have raised billions of dollars from investors looking to cash in on the third-party seller rollup bandwagon. Aggregators have acquired promising products and stores on Amazon to use their data and operational expertise to drive sales. But that hype began to wane last year as the pandemic ended, e-commerce growth slowed and economic uncertainty increased.
Thrasio, ranked No. 40 on the 2022 CNBC Disruptor 50 list, has raised $3.4 billion. The company at one point considered going public through a special purpose acquisition company (SPAC), but plans were shelved due to a complex audit process, CNBC previously reported.
The company will lay off about 20% of its workforce in 2022, with several executives leaving, including co-founder Josh Silverstein. That year, the company named Greeley, a 19-year veteran who oversaw the development of the Prime loyalty program at Amazon, as CEO, replacing co-founder Carlos Cashman, who remains a member of the Thrasio board. It became.
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