Benitago, one of a slew of investment groups that acquire businesses selling their products through Amazon, has filed for bankruptcy, less than two years after raising $325 million in funding, Wall Street Journal reported. The New York-based online seller sought protection from creditors Wednesday in the U.S. Bankruptcy Court in Manhattan, listing both assets and liabilities ranging from $50 million to $100 million. Tom Studebaker at advisory firm Portage Point Partners has been appointed as Benitago’s chief restructuring officer. The company, founded in 2016, operates in a small but lively wing of the e-commerce market in which groups of investors buy small third-party sellers on Amazon’s online marketplace and run them as a group, providing greater marketing and logistics expertise to the businesses. Many of those sellers use the Fulfillment by Amazon warehousing and delivery service and can gain better pricing when they consolidate their purchasing under a single owner.
