Quiver Quantitative - Thrasio, an e-commerce giant specializing in the acquisition of Amazon-based (AMZN) consumer brands, is actively exploring restructuring avenues in response to the decline in online shopping post-pandemic. The startup, having secured an impressive $3.4 billion in funding, has enlisted the expertise of consultants from AlixPartners and attorneys from Kirkland & Ellis to navigate its financial turbulence. While the primary focus is on raising additional capital, all options, including a potential bankruptcy filing, are on the table.
The "Amazon (NASDAQ:AMZN) aggregation" model, on which Thrasio's strategy is built, has faced challenges as consumer online purchasing habits recede from their pandemic peak. The company had to lay off 20% of its workforce in the previous year. Moreover, the company founder, Carlos Cashman, relinquished his role as CEO, paving the way for former Amazon executive Greg Greeley.
This downturn isn't unique to Thrasio. Benitago Group, another player in the Amazon aggregation space, recently filed for bankruptcy, attributing its downfall to the shift in online consumer behavior. Acquco, a third aggregator, is currently embroiled in legal issues with a lender over alleged loan default.
Amid these industry challenges, Thrasio's significant fundraising efforts stand out. With investments pouring in from entities like Advent International and Silver Lake, the company secured funding rounds that once valued it at between $5 billion and $10 billion. Both Advent and Silver Lake have refrained from commenting on the current situation.
This article was originally published on Quiver Quantitative