Online retail platform Zulily will “wind down” its business due to a “challenging business environment,” the company said on Wednesday, marking a shocking end for the mall once valued at $9 billion.
Founded in 2009, Zulily was a mom-focused retailer where consumers could find curated new clothing, toys and home decor on the platform, according to a description on PitchBook. The Seattle-based company went public a decade ago and was once valued at $9 billion, according to the Wall Street Journal.
Since then there have been a few changes of ownership. QVC's parent company bought Zulily in 2015 for $2.4 billion. But in May, Zulily found new owners when it was acquired by investment firm Regent. This sale did not get the company back on track and has now come to an end. Liquidation proceedings were announced on Wednesday.
“This decision was not easy nor was it taken lightly. “However, given the challenging business environment in which Zulily operated and the associated financial instability, Zulily decided to take immediate and rapid action,” said Ryan C. Baker, vice president at Douglas Wilson Companies, the company handling the resolution the company liquidation, in a statement.
Newsweek contacted the company via email Wednesday afternoon seeking comment.
QVC Zulily representatives speak at the 2016 Pennsylvania Conference for Women. Zulily said Wednesday that the company is going out of business. (Photo by Marla Aufmuth/Getty Images for the Pennsylvania Conference for Women)
In the statement, Baker indicated that the company would attempt to fulfill the majority of its outstanding orders in the next two weeks.
“For orders that could not be fulfilled, Zulily has made every effort to ensure that those orders are canceled and refunded,” Baker said. “If you have placed an order and do not receive it or a refund by January 22, 2024, please contact Omni Agent Solutions, our claims adjuster.”
Baker added that they intend to carry out the liquidation process expeditiously.
“Zulily will continue to strive to provide the best possible service to everyone during the holiday season,” he said.
The company reported a 28 percent decline in sales to $254 million in the fourth quarter of 2022, the parent company said in March. Over the year, sales fell by almost 40 percent to $906 million.
Douglas Wilson Companies (DWC) said it hoped the closure of the Zulily business would help “maximize value for the companies’ creditors”.
“[We] “Will act as third-party trustee to conduct an orderly wind-down of the business to maximize recovery for the companies’ creditors,” Baker said in the statement.
DWC said in an earlier statement that it had created a frequently answered questions platform for both Zulily's customers and suppliers to help them navigate the company's closure process.
The process could take between 12 and 18 months, they said.
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Newsweek strives to challenge conventional wisdom and find connections in the search for common ground.