(Credit: David Ryder/Bloomberg via Getty Images)
E-commerce site Zulily is shutting down. The Seattle-based online retailer has announced plans to liquidate its inventory to pay its creditors before eventually ceasing operations.
Zulily launched in 2009 and had a strong start, including a multi-billion IPO in 2013. That was later muted by Amazon and other e-commerce platforms, which Zulily claims stifled its business, The Seattle Times reports. In May, it was purchased by a private equity firm.
Earlier this month, Zulily sued Amazon, accusing it of "anticompetitive conduct that destroys its competitors and raises prices for consumers everywhere." As GeekWire notes, Zulily's suit relies in part on allegations made by the FTC, which also sued Amazon this year for "illegally maintaining monopoly power." Amazon denies any wrongdoing in either case.
Zulily says it plans to fulfill all pending orders within the next two weeks; it will cancel and refund any orders it cannot fulfill. As part of the shutdown, Zulily has laid off more than 800 employees, rumblings of which emerged a few weeks ago. Seventy-five people remain the payroll for now to help with inventory and fulfilling orders.
If you’ve placed an order with Zulily and don’t receive it by Jan. 22, the company says to contact its claims agent, Omni Agent Solutions, at ZulilyCustomersABC@OmniAgnt.com.
A notice on Zulily’s website says it opted to “take immediate and swift action” to maximize value for its creditors. It chosean Assignment for the Benefit of Creditors over bankruptcy since that route is often cheaper and more streamlined than bankruptcy proceedings, the Seattle Times notes.