US e-commerce company Zulily says it is closing, surprising customers, after attempts to save the company failed
SEATTLE — US online retailer Zulily is closing, surprising customers and laying off hundreds of employees after efforts to save the company failed.
The Seattle-based company said in a message on its website that it had attempted to fill all outstanding orders and expected to do so within the next two weeks. Zulily said it was trying to ensure orders that couldn't be filled were canceled and refunded, and offered a contact person for customers who hadn't received their orders or refunds.
“This decision was not easy and was not taken lightly. However, given the challenging business environment in which Zulily was operating, and the associated 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. arranging the guardianship for the company.
Founded in 2010 by Darrell Cavens and Mark Vadon, Zulily made a splash with products for families with young children and staged a successful IPO on the Nasdaq in 2013. But it was taken private after being sold for $2.4 billion in 2015 acquired by QVC's parent company. company Qurate, formerly known as Liberty Interactive. Zulily's CEO Terry Boyle left the company at the end of October as financial problems mounted following its takeover by private equity firm Regent van Qurate in May.
The company's liquidation followed several rounds of layoffs as Zulily struggled to compete with Amazon.
Rather than going bankrupt, Zulily uses an alternative to winding up the business known as an Assignment for the Benefit of Creditors (ABC). The company has transferred all of its assets and operations into trust to Zulily ABC, LLC, to pay creditors from the proceeds of its sale.