Thrasio, A Leading Amazon Aggregator, Files For Bankruptcy

(CTN News) – As one of the early leaders in aggregating Amazon sellers, Thrasio filed for Chapter 11 bankruptcy protection in a New Jersey court on Wednesday, according to reports.

The company said it had agreed with its lenders to reduce its debt load by about $495 million as a result of the agreement.

According to Thrasio, some creditors have agreed to provide it with up to $90 million in fresh capital, which will be used in order to fund ongoing operations, and will enable it to continue to run the brands that are part of its portfolio in the near future.

In a statement issued by Thrasio CEO Greg Greeley, the company said: “Thrasio is one of the largest third-party sellers on the Amazon marketplace, and with a strengthened balance sheet and new capital, we will be better able to scale our infrastructure, support our brands and provide opportunities going forward. In a bid to cash in on what has become a craze of third-party seller rollups,

Thrasio and other Amazon aggregators have raised billions of dollars from investors.

It is not uncommon for aggregators to buy up promising products and storefronts on Amazon, so that they can use their data and operational expertise in order to turbocharge sales.

It was only last year, as the grip of the pandemic ended, the growth of e-commerce slowed and economic uncertainty was intensifying, when the hype began to fade.

In terms of fundraising, Thrasio, which ranked 40th on the 2022 CNBC Disruptor 50 list, raised a total of $3.4 billion. Earlier reports suggested that the company was planning to go public through a special purpose acquisition company, or SPAC.

However, the plans were scrapped due to a complicated auditing process.

Around 20% of the company’s employees were laid off in 2022 and several executive members of the company departed, including Josh Silberstein, the company’s co-founder.

During that same year, Thrasio named Greeley, a 19-year veteran of Amazon who oversaw the development of the Prime loyalty program, as its CEO, following in the footsteps of co-founder Carlos Cashman, who is still on the board of directors of the company even today.

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