IANS | 29 Feb, 2024
Thrasio Holdings Inc, an aggregator of private brands on Amazon, has
filed for bankruptcy in the US in order to reduce its losses from a
massive debt load, the company said on Wednesday.
The company
filed for protection under Chapter 11 of the US Bankruptcy Code and
received commitments from certain of its lenders for up to $90 million
in new financing.
Thrasio entered into a restructuring support
agreement with some of its lenders to reduce debt of $495 million, the
company said.
"We are taking steps to build on this progress by
strengthening our financial position and working with our lenders to
support our future success," Greg Greeley, Chief Executive Officer of
Thrasio, said in a statement.
According to the company, the
infusion of new capital ($90 million) is expected to provide sufficient
liquidity to support the company throughout this process and beyond.
"In
particular, the financing will enable the continued operation of
Thrasio's brands, support ongoing business operations and provide the
company with access to new capital upon emergence from Chapter 11 to
support go-forward business operations," it added.
According to a
document filed with the New Jersey bankruptcy court, the company listed
assets between $1 billion and $10 billion, and liabilities between $500
million and $1 billion. According to reports, the company clocked over
$500 million in revenues and a profit of $100 million in 2020.
The startup was valued at over $3 billion in February 2021.
