Thrasio, a pioneer in consolidating Amazon sellers, filed for Chapter 11 bankruptcy protection in a New Jersey court on Wednesday.
The company disclosed that it had reached an agreement with creditors to reduce its debt burden by approximately $495 million. Thrasio also announced that certain creditors have committed to injecting up to $90 million in fresh capital, earmarked for sustaining ongoing operations and supporting the brands within its portfolio.
“Thrasio is one of the largest third-party sellers on the Amazon marketplace, and with a reinforced balance sheet and infusion of new capital, we will be better positioned to bolster our brands, expand our infrastructure, and pursue future opportunities,” remarked Thrasio CEO Greg Greeley in a statement.
Thrasio, alongside other Amazon aggregators, attracted substantial investments from stakeholders seeking to capitalize on the surge in third-party seller aggregation. These aggregators acquired promising products and storefronts on Amazon, leveraging their data and operational proficiency to drive sales growth. However, enthusiasm waned last year as the pandemic subsided, e-commerce expansion decelerated, and economic uncertainties mounted.
Ranked 40th on the 2022 CNBC Disruptor 50 list, Thrasio amassed $3.4 billion in funding. Initially considering a public listing via a special purpose acquisition company (SPAC), the company abandoned those plans due to intricate auditing procedures, as previously reported by CNBC.
In 2022, Thrasio underwent workforce reductions, laying off approximately 20% of its employees, and witnessed several executive departures, including co-founder Josh Silberstein. That same year, Greg Greeley, a veteran of Amazon with 19 years of experience overseeing the development of its Prime loyalty program, assumed the role of CEO, succeeding co-founder Carlos Cashman, who continues to serve on Thrasio’s board.
