A popular clothing retailer now begins an unexpected liquidation following its Chapter 11 bankruptcy, sources report.
While Zulily had a sad fall from grace, it was once a huge digital success story with a value of around $4 billion, reports TheStreet.
The company had a long, slow decline, since it was purchased by Regent, a private equity firm for $2.4 billion in 2015.
The retailer started as a niche company serving moms and their children. That was a lucrative niche and the company had a unique business model using a limited amount of flash sales each day.
It was a model that made the site a destination. People literally set alarms so they could see what items were being put on sale at the set time.
As Zulily moved away from that model, the company lost what made it special. It continued to expand beyond its original focus of young moms and generally became just another site with slower shipping than Amazon and nothing that made it overly special.
It wasn’t one thing that forced Zulily into bankruptcy and liquidation, instead it was a combination of bad choices that led to a slow collapse, reports TheStreet.
Gordon Brothers has now been contracted to sell off that inventory as well as “the assets of two 775,000-square-foot fulfillment centers on behalf of Zulily ABC LLC,” according to a press release.
“The inventory available for sale includes nationally branded consumer products, including apparel, footwear, small appliances, beauty and housewares.
The available fixed assets include material handling equipment, racking and other warehouse support machinery,” Gordon Brothers shared.
The sale will be a “private treaty sale,” an auction where merchandise is sold in lots.
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Also Read: Three Massive Restaurant Chains Now Begin Closing Locations
Other Economy News Today
An essential retailer is now laying off 145 employees, mostly in its corporate workforce, a spokesperson confirmed.
In November, Walgreens laid off 5% of its corporate workforce, capping off a year of hundreds of announced store closures, a previous round of layoffs and turnover in the C-suite.
The latter included the departure of its CEO, CFO, CIO, chief medical officer and chief marketing officer, RetailDive reports.
In June, the retailer said it would close 150 stores in the U.S. and 300 in the U.K., part of a cost-cutting effort that targets at least $800 million in savings in 2024, for an accumulation of $4.1 billion in savings.
The company has a ways to go in that plan, however.
“While Walgreens continues to progress on reducing costs and delivering on our commitments to be the independent healthcare provider of choice, we still have significant cost savings and growth goals to deliver,” the spokesperson said.
“To help us achieve these goals we have made the difficult but necessary decision to lay off 145 team members primarily from our corporate workforce.”
Last month the retailer slashed its dividend as it reported a fiscal Q1 dragged down by its U.S. stores, where sales fell 6.1%, and comparable retail sales fell 5%.
At the company’s U.K. Boots locations, by contrast, retail comps rose 9.8% year over year, store footfall rose 7% and its retail market share grew for the 11th straight quarter, led by beauty.
Walgreens has also announced that the Duane Reade location in Midtown Manhattan, New York, will shutter in weeks.
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Also Read: A US Company Now Declares An Unexpected Bankruptcy
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