Online retailer Zulily announced on Wednesday that it would close and liquidate its assets. Photo courtesy of PublicDomainPictures/Pixabay
Dec. 27 (UPI) — Online retail store Zulily said Wednesday it will liquidate its assets and close.
In a post on its website, Zulily said it had “made the difficult but necessary decision to conduct an orderly wind-down of the business to maximize value for the company's creditors.”
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“Given the challenging business environment in which Zulily has been operating and the associated financial instability, Zulily has decided to take immediate and rapid action,” the company said.
In October, Zulily CEO Terry Boyle resigned from his position and the company announced a series of layoffs throughout the year.
Although the company is not going bankrupt, it has reached an agreement with its creditors to try to sell its assets.
On Friday, Zulily completed an assignment for the benefit of creditors, a process that allows a company to transfer assets to a trust or third party to help pay creditors.
The company says it will attempt to fulfill all outstanding orders and that it will attempt to issue refunds for orders that cannot be fulfilled by January 22nd.
The company was founded in 2010 primarily as a children's and women's clothing outlet, but has struggled to compete with other online retail competitors such as Amazon.