SellerX, a buyer of successful marketplace sellers, can not meet its financial obligations. The Berlin-based company, only 4 years old, shall be auctioned within the German capital on September 17. This decision was made by financier BlackRock.
SellerX is one of the well-known marketplace aggregators, acquiring successful traders and types on marketplaces and aiming to make them more efficient. Founded in August 2020, SellerX aimed to turn out to be a European counterpart to the American Thrasio.
Investment in aggregators dried up
These ecommerce aggregators, including Berlin Brands Group and Razor Group form Germany and Dwarfs from the Netherlands, saw significant growth through the pandemic. Nonetheless, investment has since dried up. Pioneer Thrasio, that also targeted European ecommerce corporations, narrowly avoided bankruptcy.
BlackRock lent half a billion euros
BlackRock reportedly lent a complete of half a billion euros to SellerX. Through the years, SellerX acquired competing aggregators like KW Commerce and American industry peer Elevate Brands. Nonetheless, the borrowers have failed to satisfy their repayment obligations, in keeping with Bloomberg. Founders Philipp Triebel and Malte Horeyseck left the corporate this summer.
To recuperate a number of the money and gain control, BlackRock has organized an auction in a Berlin hotel in two weeks. Bloomberg describes this as an “unusually aggressive step” for the world’s largest asset manager.
‘An unusually aggressive step.’
BlackRock has brought attention to the auction, supported by investment firm L. Catterton, through an commercial within the Börsen-Zeitung. Other creditors, akin to loan manager Victory Park Capital, are also expected to learn.
Breaking the deadlock
In Germany, creditors can organize auctions to take control of corporations when negotiations between corporations, investors, and banks reach a deadlock. GLAS, a debt management service provider, will organize the SellerX auction.
