Thrasio, a startup that raised $3.4 billion to buy up consumer brands sold on Amazon, is exploring restructuring options as it contends with a post-pandemic slump in online spending, WSJ Pro Bankruptcy reported. The e-commerce company has been working with consultants from AlixPartners and lawyers from Kirkland & Ellis to address its financial challenges, they said. Thrasio is focused on raising fresh capital and could examine other possibilities, including a bankruptcy filing, they said. After raising funds from investment firms including Advent International and Silver Lake, Thrasio went on an acquisition spree, gobbling up dozens of companies that sell their wares primarily through Amazon, from sellers of camping gear and kitchen tools to pet deodorizers. But this business model, known as “Amazon aggregation,” has come under pressure as shoppers have curtailed their online purchases since the height of the Covid-19 pandemic. Last year, Thrasio laid off roughly 20% of its workforce, while company founder Carlos Cashman stepped down as chief executive and was succeeded by Greg Greeley, a former Amazon executive. The company’s recent trajectory has tracked other startups that raised money at lofty valuations during the pandemic but have since struggled to weather economic headwinds, changing consumer behaviors and a pullback in technology investing.
