Thrasio, an early leader in aggregating Amazon sellers, filed for Chapter 11 bankruptcy protection in a New Jersey court today, CNBC reported.
The company said it had agreed with lenders to shave about $495 million off its debt load. Thrasio said some creditors have committed to provide it with up to $90 million in fresh capital, which it said will go toward ongoing operations, and enable it to keep running brands in its portfolio.
Thrasio was racing to the public markets to fuel its rapid expansion. But the company in October 2021 delayed its plan to go public through a SPAC amid complications with its financial audits. Since then, the aggregator market has begun to flatten.
“Thrasio is one of the largest third-party sellers on the Amazon marketplace, and with a strengthened balance sheet and new capital, we will be better equipped to support our brands, scale our infrastructure and enable future opportunities,” Thrasio CEO Greg Greeley said in a statement.
Thrasio and other Amazon aggregators raised billions of dollars from investors looking to cash in on the third-party seller rollup craze. Aggregators bought up promising products and storefronts on Amazon, to use their data and operational expertise to turbocharge sales. But the hype began to fizzle last year as the pandemic ended, e-commerce growth slowed and economic uncertainty increased. Read more.
