- Thrasio has filed for bankruptcy after amassing over $3 billion in debt.
- The move provides $90 million in emergency financing to restructure.
- Once valued at $10 billion, Thrasio’s valuation plunged to just $193 million in 2022.
Overwhelming debt
Thrasio, the startup that popularized acquiring and consolidating smaller Amazon marketplace sellers, has filed for Chapter 11 bankruptcy protection.
The move comes amid financial struggles after raising over $3 billion in equity and debt funding.
Thrasio has secured $90 million in emergency financing to support ongoing operations during the restructuring.
The deal covers 81% of revolving credit and 88% of term loan lenders. It will eliminate around $495 million of Thrasio’s debt.
Once a $10 billion company
Thrasio planned to gain economies of scale by aggregating e-commerce brands. But it faced challenges consolidating disparate businesses as consumer demand fluctuated.
The overall downturn in tech funding further strained its financial position.
Thrasio was valued at nearly $10 billion at its peak in 2021. But its valuation plunged to just $193 million by late 2022, according to one estimate.
The bankruptcy filing represents a stunning fall for a startup once heralded as a high-flying unicorn.
