News

Zulily Closes Down Amid Financial Instability

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Andrew R. Michaud

December 27, 2023

SEATTLE — Zulily, the popular U.S. online retailer, has announced its closure, leaving customers surprised and leading to the unfortunate layoff of hundreds of workers. Despite attempts to salvage the business, Zulily's management has deemed it necessary to shut down operations.

In a notice posted on their website, the Seattle-based company assured customers that they have been diligently working to fulfill all pending orders. Zulily expects to complete this task within the next two weeks. For orders that cannot be fulfilled, the company has made arrangements for cancellation and refund. Customers who have not received their orders or refunds can get in touch with the company for further assistance.

"This decision was not taken lightly, considering the challenging business environment in which Zulily operated and the resulting financial instability. However, Zulily deemed it crucial to take immediate and decisive action," stated Ryan C. Baker, Vice President at Douglas Wilson Companies, a management consulting firm entrusted with Zulily's receivership.

Founded in 2010 by Darrell Cavens and Mark Vadon, Zulily quickly gained popularity for its range of products catering to families with young children. The company enjoyed significant success, culminating in a successful IPO on Nasdaq in 2013. However, it was later taken private after being acquired for $2.4 billion by Qurate, the parent company of QVC (formerly known as Liberty Interactive), in 2015. Following Zulily's acquisition by private equity firm Regent from Qurate in May, financial troubles began mounting, leading to CEO Terry Boyle's departure in October.

Struggling to compete with retail giant Amazon, Zulily faced several rounds of layoffs before ultimately deciding against bankruptcy. Instead, they chose an alternative option called an Assignment for the Benefit of Creditors (ABC) to wind down their business. Under this arrangement, all assets and business operations have been transferred to Zulily ABC, LLC, to facilitate the payment of creditors from the proceeds of asset sales.