Zulily Shutdown: Online Retail Company Shuts Down After Rounds of Layoffs and CEO Departure Due to ‘Financial Instability’
Zulily, online retailer based in Seattle was recently shut down to due financial instability. The company was acquired by Regent from Qurate Retail Group on May 24, 2023. After acquisition by Regent, the company went two rounds of layoffs and shut down in December.
Mumbai, December 28: Zulily, an American e-commerce company based in Seattle, has shut down after seven months of being under new ownership. The US-based online retailer went out of business after reportedly touting "Best Price Promise". Regent investment firm acquired the company form Qurate Retail Group in May 24 2023. According to the reports, after acquisition, hundreds of people were sacked as a result of Zulily layoffs initiated for liquidation.
According to the report by NBC News, hundreds of people were laid off from multiple states during the last week - about 800 employees were in mid-December, from 1,900 workforce. Zulily reportedly claimed that the e-commerce giant Amazon forced out the third-party suppliers to maintain "price priority" hinting to eventually leading to its shutdown. Microsoft and OpenAI Sued by The New York Times for Copyright Infringement, Lawsuit Calls Companies To Destroy AI Chatbot Models Using Copyrighted Material: Report
Zulily Shutting Down Its Operations Due to Financial Instability:
Zulily announced on its official website that it made a "difficult but necessary decision" to shut the down business. The post read that Zulily decided to take immediate and swift action due to the challenging business environment and corresponding financial instability. According to NBC News, Zulily was long considered a "staple of Seattle's tech scene" and recently became known for its "aggressive advertising" across social media platforms.
Zulily's History and Journey:
Zulily was founded on December 10, 2009, by Darren Caverns and Mark Vadon. Headquartered in Seattle, the company serves areas like the United States, the United Kingdom, Canada, Ireland, and Australia. According to the report by Forbes, Zulily offered steep discounts on different products for limited periods. Despite being a flash sale site, the company could not match the flash deliveries. The customers did not get "instant gratifications" as the suppliers used to send the products to the company after sorting and placing orders, ultimately delaying process for up to two weeks. Zomato Stock Down After Company Receives Rs 400 Crore ‘Show-Cause' Notice From GST Authorities Over Unpaid Dues: Report.
Regent chair Michael Reinstein showed excitement about partnering with the Zulily team in helping company return to its "entrepreneurial roots as an independent business." However, immediately after the acquisition, Regent initiated two rounds of layoffs. December 22, 2023 was announced to be the final closure date for Zulily.
(The above story first appeared on LatestLY on Dec 28, 2023 03:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).