The American e-commerce platform Zulily is shutting down, unexpectedly impacting customers and resulting in the termination of hundreds of employees following unsuccessful attempts to rescue the business.
The company, headquartered in Seattle, conveyed in a notice on its website that it endeavoured to fulfil all outstanding orders, anticipating completion within the next two weeks. Zulily expressed its commitment to cancelling and refunding unfulfilled orders, providing a contact option for customers who did not receive their orders or refunds.
“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,” said the notice, signed by Ryan C. Baker, vice president at management consultant Douglas Wilson Companies, which is handling the receivership for the company.
Established in 2010 by Darrell Cavens and Mark Vadon, Zulily gained prominence with offerings tailored for families with young children and achieved a prosperous IPO on the Nasdaq in 2013. However, it transitioned into private ownership after being acquired in 2015 for $2.4 billion by QVC’s parent company, Qurate, formerly recognized as Liberty Interactive. Facing financial challenges subsequent to its acquisition by the private equity firm Regent from Qurate in May, Zulily witnessed the departure of its CEO, Terry Boyle, at the end of October.
The company’s liquidation followed several rounds of layoffs as Zulily struggled to compete with Amazon.
Rather than opting for bankruptcy, Zulily has chosen an alternative method for winding down its business, known as an Assignment for the Benefit of Creditors, or ABC. The company has transferred all its assets and business into trust under Zulily ABC, LLC, with the intention of settling debts using proceeds generated from their sale.
