US online retailer Zulily has announced its closure, catching customers by surprise.
Driving the news: Efforts to salvage the business have failed, leading to the decision to go into liquidation, Zulily announced in a statement on its website.
- The Seattle-based company tried to fulfill pending orders and expects to complete them within the next two weeks.
- The company is working to cancel and refund orders that cannot be filled.
- An Assignment for the Benefit of Creditors (ABC) will be used as an alternative to bankruptcy for winding down the business.
- Zulily struggled to compete with Amazon and faced financial instability.
- The company was acquired by QVC parent company Qurate in 2015 and was later taken private.
- Zulily CEO Terry Boyle left the company in October as financial troubles mounted.
What they’re saying: Ryan Baker, vice president of management consultant Douglas Wilson Companies – the firm that is handling the receivership for Zulily – wrote the following on the company’s website:
- This decision was not easy nor was it entered into lightly. However, given the challenging business environment in which Zulily operated, and the corresponding financial instability, Zulily decided to take immediate and swift action.”