Amazon Aggregator Thrasio Files For Bankruptcy
Thrasio, which acquires third-party Amazon sellers, filed for Chapter 11 bankruptcy protection and received commitments for $90 million in new financing from existing shareholders, it said on Wednesday. From a report: Thrasio also entered into a restructuring agreement with some of its lenders to reduce debt of $495 million from its existing debt pile, it said in a statement. It listed its estimated assets in the range of $1 billion to $10 billion and estimated liabilities of $500 million to $1 billion, according to a document filed with the New Jersey bankruptcy court. Billions of dollars, primarily in loans and other debt instruments, were invested into newly-formed startups aggregating third-party merchants on Amazon's marketplace during the COVID-19 pandemic as investors bet heavily on a prolonged explosion in online shopping. But as lockdowns eased and consumers returned to brick-and-mortar stores, sales growth on Amazon slowed, leaving these heavily-indebted "roll-up" companies struggling to service interest payments.

Read more of this story at Slashdot.