What Happened to Zulily? Why is Zulily Going Out of Business?
by Kavitha
Updated Dec 19, 2023
Zulily
Zulily, LLC, an American e-commerce company founded on December 10, 2009, is headquartered in Seattle, Washington. Targeting young mothers seeking brand-name goods for their children, Zulily specializes in children's and women's apparel, toys, infant gear, and home decor. Noteworthy founders include Darrell Cavens and Mark Vadon. Terry Boyle currently serves as the CEO, with Mark Vadon acting as Chairman.
Operating in the Internet and online retailing industry, Zulily has a unique business model – it doesn't maintain inventory but consolidates shipments of vendor-owned merchandise at fulfillment centers or uses drop shipping directly to customers. The company is known for offering daily discounts on a variety of products, with sales typically lasting 72 hours. During its peak in 2014, half of Zulily's orders were made through mobile devices.
However, recent developments paint a challenging picture for Zulily. In December 2023, the company laid off over 800 employees and announced a going-out-of-business sale on December 9. This adds to a series of difficulties, including lawsuits, financial struggles, and a lawsuit against Amazon, contributing to the uncertainty surrounding the future of this once-thriving e-commerce platform.
What Happened to Zulily?
Zulily, a once-thriving online retailer valued at over $7 billion in 2014, is facing a significant decline. Recently, its website became inaccessible, displaying a "down for maintenance" message, raising uncertainty about its future. Earlier in the month, Zulily announced layoffs and office closures, with some employees receiving abrupt layoff notices last week, contrary to previous plans.
The company's downfall follows its acquisition by Regent in May, marked by multiple layoffs, relocation to a smaller headquarters, and unpaid vendor invoices. Lawsuits were filed against Zulily for non-payment, while Zulily itself filed a suit against Amazon, alleging anti-competitive practices
Zulily's challenges reflect a broader narrative involving Regent, which has acquired over 30 businesses since 2015. Despite attempts to reach Regent for comments, there has been no response.
In summary, Zulily's current state involves a non-functional website, layoffs, financial struggles, and legal disputes, highlighting a stark contrast to its former success. The company's future is uncertain as it grapples with a series of setbacks following the acquisition by Regent.
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Why is Zulily Going Out of Business?
Zulily, founded in 2009, is shutting down its operations, laying off over 300 employees, and organizing a going-out-of-business sale. The closure is attributed to years of declining revenue and the company's inability to compete with Amazon. Zulily filed a lawsuit against Amazon, alleging substantial revenue losses due to unfair competition tactics.
The e-commerce firm, once valued at $7 billion, faced financial challenges since 2015, leading to its acquisition by Liberty Interactive-QVC. Despite efforts, including layoffs and facility closures, Zulily struggled under new ownership by Regent in 2023. The decision to cease operations reflects ongoing financial difficulties and heightened competition, prompting the company to conclude its business and conduct a final sale.
What Happened to Zulily - FAQ
Zulily is known for its online retail platform specializing in children's and women's apparel, toys, infant gear, and home decor, offering daily discounts.
Zulily was founded by Darrell Cavens and Mark Vadon.
Zulily is closing due to years of declining revenue, increased competition, and its inability to compete with Amazon, leading to financial challenges.
After being acquired by Regent, Zulily faced layoffs, relocation to a smaller headquarters, unpaid vendor invoices, and legal disputes, contributing to its downfall.
Zulily announced layoffs of over 800 employees and a going-out-of-business sale in December 2023.