A giant Amazon seller now declares an unexpected bankruptcy, part of a restructuring agreement with lenders to slash its debt.
Walpole, Massachusetts-based Thrasio is asking the court to oversee a restructuring agreement with lenders, which will allow it to cut about $495 million in debt and defer its interest payments for a year after it exists bankruptcy.
The third-party seller for Amazon filed for Chapter 11 bankruptcy protection in a New Jersey court on Wednesday, reports ABC News.
Thrasio is what is known as an Amazon aggregator, companies that buy other, smaller Amazon sellers, the independent businesses responsible for the majority of sales on the dominant e-commerce platform.
Aggregators raised large sums from investors seeking to cash in from Amazon sellers as online sales boomed during the COVID-19 pandemic.
But that growth slowed as the pandemic eased and shoppers began to purchase more items in person, or shifted their spending toward other things, like traveling and dining.
Last year, another Amazon aggregator, Benitago, filed for bankruptcy.
In its filing, Thrasio said it has received commitments of up to $90 million in new financing from lenders.
The company is listing up to $10 billion in assets and up to $1 billion in liabilities.
“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,” CEO Greg Greeley said in a statement.
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Other Economy News Today
Another tech company is now laying off 350 employees to help drive stronger operating leverage and align with “future strategic priorities.”
Bumble announced on Tuesday plans to lay off roughly 350 employees as part of a restructuring plan, reports CNBC.
A company spokesperson said the cuts amount to approximately 30% of Bumble’s workforce.
Bumble said the layoffs will help drive stronger operating leverage and align its operating model with “future strategic priorities,” according to its fourth-quarter report.
Bumble had more than 950 full-time employees as of December 31, 2022, according to a filing with the U.S. Securities and Exchange Commission.
The spokesperson said the latest annual report will be published later this week.
The dating app reported $273.6 million in revenue for the quarter, up from the $241.6 million in the same period last year.
Bumble posted a net loss of $32 million, or a loss of 19 cents per share, compared to the year-ago quarter, when the company reported a net loss of $159.2 million, or 35 cents per share.
Shares of Bumble fell more than 8% in after-hours trading Tuesday.
Bumble CEO Lidiane Jones said in a statement that the company is taking “significant and decisive” action to accelerate its product roadmap.
“We believe these actions will strengthen our foundational capabilities and enable us to continue delivering new and engaging user experiences that create healthy and equitable relationships,” Jones said in the release.
Bumble is the latest company in the tech sector to announce cuts in recent months, as investors continue to push for efficiency.
Companies such as Google and Amazon have continued to trim headcount, and more than 170 tech companies have cut nearly 44,000 jobs, according to Layoffs.fyi, an industry tracker, reports CNBC.
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