Zulily, the U.S. online retailer based in Seattle, is set to cease operations, leaving customers in surprise and resulting in the dismissal of hundreds of employees due to unsuccessful attempts to revitalize the business.
In an announcement posted on its website, the company stated that it made efforts to fulfill all existing orders and anticipated completing this process within the next two weeks. Zulily assured customers that orders unable to be fulfilled would be promptly canceled and refunded. For those who did not receive their orders or refunds, the company provided a contact option.
The decision to shut down was described as a difficult one, considering the challenging business environment and financial instability Zulily faced. The notice, signed by Ryan C. Baker, Vice President at management consultant Douglas Wilson Companies, which is overseeing the receivership, emphasized the necessity for immediate and decisive action.
Advertisement
Founded in 2010 by Darrell Cavens and Mark Vadon, Zulily initially gained attention for its family-oriented products and achieved a successful IPO on the Nasdaq in 2013. However, after being acquired for $2.4 billion by QVC parent company Qurate in 2015, the company went private. Zulily's CEO Terry Boyle departed in October due to mounting financial difficulties following its acquisition by private equity firm Regent from Qurate in May.
Facing stiff competition from Amazon, Zulily underwent multiple rounds of layoffs in an attempt to stay competitive. Rather than opting for bankruptcy, Zulily chose an alternative route for winding down its operations—employing an Assignment for the Benefit of Creditors (ABC).
Advertisement
The company transferred all its assets and business into the care of Zulily ABC, LLC, to pay creditors from the proceeds generated through asset sales.
