U.S.-based online retailer Zulily has officially confirmed its decision to shut down its operations and liquidate assets, citing a challenging environment as the main reason for deciding to close its doors, the AP reported.
A notice on the company’s website stated that the Seattle-based company has begun to fill all pending orders and anticipates being able to do so within the next two weeks. The statement said the company intended to ensure orders that could not be fulfilled were canceled and refunded, and it offered contact information for customers who had not received their orders or refunds.
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“This decision was not easy nor was it entered into lightly. However, given the challenging business environment in which Zulily operated, and the corresponding financial instability, Zulily decided to take immediate and swift action,” according to the notice, signed by Douglas Wilson Companies’ vice president Ryan C. Baker, who is handling the company’s receivership.
Darrell Cavens and Mark Vadon founded Zulily in 2010. The company experienced success when it provided products for families with young children and was able to stage a successful initial public offering (IPO) in 2013 on the Nasdaq.
It was estimated that the retailer was worth approximately $9 billion in 2015, and the company subsequently signed a sponsorship agreement with Major League Soccer’s Seattle Sounders for the 2019 season. The company was taken private after it was acquired by QVC parent company, Qurate, formerly Liberty Interactive, for $2.4 billion in 2015.
Zulily’s CEO, Terry Boyle, left the company at the end of October after financial problems intensified following the company’s acquisition in May by private equity firm Regent from Qurate. Moreover, under the new owner, the company has moved its headquarters to a smaller space, reducing its staff and moving employees.
Zulily liquidated after carrying out several rounds of layoffs as the retailer struggled to compete with Amazon and fast-fashion retailers such as Shein and Temu. It was earlier this month when Zulily filed a lawsuit against Amazon in which they alleged that the latter was working to “destroy” the former through the use of price-fixing procedures.
The notice was issued just a week after the retailer appointed Douglas Wilson Companies (DWC), a specialized business, workout, and real estate services firm, as the assignee for its Assignment for the Benefit of Creditors (ABC) transaction.
To wind down the business more quickly, Zulily is using an alternative called an ABC to liquidate its business by transferring all its assets and business to Zulily ABC, LLC, which will be in charge of paying creditors from the proceeds of the sale.
