Online retailer Zulily announced its decision to cease operations, leaving customers stunned and hundreds of workers facing layoffs.
Despite attempts to salvage the business, the Seattle-based company cited financial instability and a challenging business environment as reasons for the abrupt closure.
In a notice on its website, Zulily assured customers that efforts were being made to fulfill pending orders within the next two weeks. The company acknowledged the difficulty of the decision and emphasized the immediate and swift action taken to address the challenging circumstances.
Instead of opting for bankruptcy, Zulily is pursuing an Assignment for the Benefit of Creditors (ABC), transferring assets and business to Zulily ABC, LLC, to pay creditors from the proceeds of asset sales.
Founded in 2010 by Darrell Cavens and Mark Vadon, Zulily gained prominence with its offerings tailored for families with young children. After a successful initial public offering (IPO) on the Nasdaq in 2013, the company was acquired by QVC parent company Qurate for $2.4 billion in 2015, taking it private.
Zulily's CEO Terry Boyle departed in October amid financial troubles following its acquisition by private equity firm Regent from Qurate in May.
While the company aims to fulfill pending orders, Zulily said it will also endeavor to provide refunds for unfulfilled orders by January 22.