Thrasio Holdings Inc., a startup within the business of shopping for and restructuring brands for online sales on Amazon and other marketplaces, is forging a brand new financial course for its own operations.
Launched in 2018, Thrasio since then has “paid over half-a-billion dollars to sellers of 200-plus brands,” the corporate says on its website.
We might be higher equipped to support our brands, scale our infrastructure and enable future opportunities.
Greg Greeley, CEO
Thrasio
Greg Greeley, CEO, Thrasio
But to maintain its aggregator strategy working under a severely weakened financial position, Thrasio said today it had filed for Chapter 11 bankruptcy protection and announced a restructuring support agreement with its creditors that “will eliminate roughly $495 million” of its debt and defer all interest payments in the primary 12 months after emerging from bankruptcy. The restructuring agreement covers about 81% of Thrasio’s revolving credit facility lenders and about 88% of its term loan lenders.
As well as, Thrasio said it has received commitments from lenders for as much as $90 million in latest financing to buoy its ongoing operations. “This infusion of recent capital is anticipated to supply sufficient liquidity to support the corporate throughout this process and beyond,” Thrasio said in a press release.
Thrasio’s bankruptcy case is within the U.S. Bankruptcy Court for the District of Recent Jersey.
Thrasio CEO Greg Greeley said that, over the past 12 months, the corporate had “made significant progress transforming the business and advancing our objectives to introduce a whole bunch of brands to thousands and thousands of shoppers.”
Brand categories range from Kids to Culinary
Thrasio deals with merchants across several product categories, including Home, Cleansing, Kids Activities, Culinary, Outdoor and Fitness.
Thrasio’s brands include Beckham Hotel Collection and Veva within the Home category, Giggle ‘N Go and Chalkstatic in Kids Activities, and Willow & Everett and Thirteen Chefs in Culinary.
In a letter to Thrasio’s customers, Greeley said: “Over the past 12 months, we’ve made significant progress to remodel the business while specializing in sustainable profitability. The steps we are actually taking will bolster our financial foundation in order that we are able to further advance our objective to introduce a whole bunch of brands to thousands and thousands of shoppers.”
Thrasio also said it expects to receive inside days approval of several motions filed with the court in search of authorization to support ongoing operations, including paying without interruption worker wages, salaries and advantages.
The corporate’s bankruptcy proceedings got here a number of years after Josh Silberstein, one in every of Thrasio’s co-founders, said the aggregator made a profit of $100 million on 2020 revenue, based on TechCrunch. Silberstein isn’t any longer with the corporate.
Promising a more positive course
As well as, TechCrunch notes that Thrasio said in 2021 that it had raised $1 billion at an organization valuation of as much as $10 billion, a valuation that secondary capital market firm Forge Global figured was $4.5 billion by 2022.
But Greeley guarantees that Thrasio is heading back to a more positive and regular course.
“Thrasio is one in every of the most important third-party sellers on the Amazon marketplace,” he said within the letter to customers. “With a strengthened balance sheet and latest capital, we might be higher equipped to support our brands, scale our infrastructure and enable future opportunities. Ultimately, these actions are designed to empower our brands to raised serve customers.”
Thrasio has retained Kirkland & Ellis LLP as its legal counsel, Centerview Partners as financial advisor, and AlixPartners LLP as restructuring advisor. Court filings and other information related to the bankruptcy proceedings can be found through a website administered by Thrasio’s claims agent, KCC LLC.
Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. [email protected].
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