Thrasio is reportedly exploring various restructuring options as it grapples with the aftermath of the pandemic-induced decline in online consumer spending.
The e-commerce startup, which garnered an impressive $3.4 billion in funding from Advent International and Silver Lake to acquire Amazon.com AMZN-based consumer brands, is now collaborating with consultants from AlixPartners and lawyers from Kirkland & Ellis to address its financial challenges.
These challenges have prompted Thrasio to consider raising fresh capital and even contemplate the possibility of a bankruptcy filing, WSJ reported.
In 2021, Thrasio was valued at $5 billion-$10 billion.
The company embarked on an ambitious acquisition spree, acquiring numerous Amazon-focused brands, ranging from camping gear and kitchen tools to pet deodorizers.
However, the 'Amazon aggregation' business model, which Thrasio and similar companies had thrived on, has experienced a downturn as online shopping habits shifted following the peak of the COVID-19 pandemic.
Last year, Thrasio laid off approximately 20% of its workforce. Additionally, company founder Carlos Cashman stepped down from his role as chief executive, with former Amazon executive Greg Greeley taking the helm.
Notably, another Amazon aggregator, Benitago Group, recently filed for bankruptcy, attributing its demise to a reversion in consumer behavior to pre-pandemic norms, where online purchases decreased.
In a separate development, a third Amazon aggregator, Acquco, is currently embroiled in a dispute with a lender who has alleged loan default.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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