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SEATTLE (AP) — U.S. online retailer Zulily is closing, surprising customers and laying off hundreds of employees after efforts to save the business failed.
The Seattle-based company said in a Information on its website He has tried to complete all the pending orders and is hopeful that he will manage it within the coming two weeks. Zulily said it was trying to ensure that orders that could not be filled were canceled and refunded and offered contacts to customers who did not receive their orders or refunds.
“This decision was not easy nor was it taken lightly. “However, given the challenging business environment in which Zulily operates, and the associated financial instability, Zulily decided to take immediate and prompt action,” the notice, signed by Ryan C. Baker, vice president of management consultant Douglas Wilson Companies, said. Which is to handle receivership 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 in 2015 after being acquired by QVC parent for $2.4 billion. The company is Qurate, formerly known as Liberty Interactive. Zulily CEO Terry Boyle left the company in late October as financial problems escalated following its acquisition by private equity firm Regent from Curate in May.
The company’s liquidation was followed by several rounds of layoffs as Zulily struggled to compete with Amazon.
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Instead of declaring bankruptcy, Zulily is using an option known as an assignment for the benefit of creditors, or ABC, to close the business. The company transferred all of its assets and business into trust to Zulily ABC, LLC, so that creditors could be paid off from the proceeds from selling them.
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