Fintech & e-commerce Layoffs

Amazon Aggregator Thrasio Files For Bankruptcy Protection After Raising Billions From Investors

Illustration of man handing a key with a shopping cart to a woman. [Dom Guzman]

Thrasio, a startup that rolls up third-party sellers on Amazon, on Wednesday said it has filed for Chapter 11 bankruptcy protection and entered a restructuring agreement that includes reduced debt and fresh capital.

The bankruptcy filing marks a dramatic reversal for Thrasio, which once bore a $10 billion valuation after raising $3.4 billion from investors including Silver Lake, Oaktree Capital Management and Goldman Sachs Asset Management.

Thrasio is the largest among a group of businesses known as “Amazon aggregators” that buy and consolidate third-party sellers on large e-commerce platforms. Other similar businesses that have raised millions from investors include Perch (more than $908 million in total funding), Elevate Brands ($372.5 million), Branded Group ($150 million) and Boosted Commerce ($137 million).

Such companies benefited from the boom in online retail kicked off by the COVID-19 pandemic — Thrasio told Crunchbase News in April 2020 after its Series B raise that it was profitable and growing fast —  but many saw their businesses begin to falter as consumers resumed their normal shopping habits.

Thrasio conducted layoffs and saw executive departures including a CEO change in 2022.

The Walpole, Massachusetts-based company said in a statement Wednesday that it had received commitments for $90 million in new financing from existing shareholders. It also said it had entered into a restructuring agreement with some of its lenders that will reduce its debt by $495 million.

In its bankruptcy filing, Thrasio listed estimated assets in the range of $1 billion to $10 billion and estimated liabilities of $500 million to $1 billion, according to Reuters.

It will continue to operate its business as it works through the bankruptcy process.

“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 equipped to support our brands, scale our infrastructure and enable future opportunities,” company CEO Greg Greeley said in the statement.

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Illustration: Li-Anne Dias

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