Thrasio, a startup that raised at least $3.4 billion to buy up consumer brands sold on Amazon, is exploring restructuring options as it contends with a postpandemic slump in online spending, according to people familiar with the company’s plans. The company has been working with consultants from AlixPartners and lawyers from Kirkland & Ellis to address its financial challenges, the people said. Thrasio is focused on raising capital and could examine other possibilities including a bankruptcy filing, the people said. A company executive declined to comment. Last year, Thrasio laid off roughly 20% of its workforce, while company founder Carlos Cashman stepped down as chief executive and was succeeded by Greg Greeley, a former Amazon executive. After raising funds from investment firms including Advent International and Silver Lake, Thrasio went on an acquisition spree, gobbling up dozens of companies that sell their wares primarily through Amazon, from sellers of camping gear and kitchen tools to pet deodorizers. But this business model, known as “Amazon aggregation,” has come under pressure as shoppers have curtailed their online purchases since the height of the Covid-19 pandemic. Another Amazon aggregator, Benitago Group, filed for bankruptcy last month, blaming its demise on a shift in consumer behavior back to prepandemic norms last year, with people purchasing fewer goods online. The reversal in consumer shopping trends led investors to shy away from backing companies built to sell niche products on Amazon, according to court papers filed by Benitago. Thrasio has received at least $3.4 billion of funding. Advent International led the initial equity financing, while Silver Lake led the latest Series D financing round in 2021 that valued the company at $5 billion to $10 billion. Advent and Silver Lake declined to comment. https://www.wsj.com/articles/amazon-aggregator-thrasio-engages-restructuring-advisers-ed1f0450 #tech #layoff #rif #bankruptcy #jobcuts #amazon
What a shitty name...
Perch, D1, now Thrasio. Hellen Keller could have seen this coming honestly.
🔥🔥
Daaaaamn, son
RIP to the person who asked if Thrasio was a good company to join a few months ago and accepted the offer I think
Anyone with a WSJ sub willing to share the text?
entire article is pasted in the op
Fck all of them . Let individual sellers do it on the side and make some $$ . These mfkers come in and try to monopolize everything . Amazon is there as a big shark anyways in that market
Spreetail is a company that tried to ink deals with a bunch of big consumer brands, where the brands would make the items, but all logistics (storage, sites that they’d sell on, shipping, etc) would be handled by Spreetail. They set up global distribution sites, and started trying be a massive 3P for Amazon. Spoiler alert: they laid of 75% of their staff and missed basically every goal they’ve ever had. (None of that’s inside knowledge from me being at Amazon, a good friend worked there for a couple years)
Can someone share the non paywall version?
the entire article is pasted in the op
all the top execs got paid and investors + employees got screwed! That’s where the money went!
Why would you spend billions on brands selling on Amazon knowing Amazon themselves will spend 10x what you do on replicating and promoting any successful ones?
I.e. the thing the FTC is suing Amazon over…