Jakarta, CNBC Indonesia – Thrasio, company brand aggregator in ecommerce Amazon, in the process of going bankrupt.
Company brand aggregator is the acquiring company brands famous in ecommerce to then be managed in one group. This business model is similar to the Unilever or P&G business model, which manages a lot brands FMCG under one umbrella to increase distribution and production efficiency.
CNBC International reported that Thrasio filed for bankruptcy protection in court in the state of New Jersey.
Thrasio said creditors had agreed to cut debt worth US$ 495 million. Several creditors have also committed to providing fresh funds worth US$ 90 million which will be used to continue operations so that brands under Thrasio can continue selling.
“Thrasio is one of the largest third-party merchants on Amazon's marketplace. With a stronger balance sheet and new capital, we can better support our brands, expand our infrastructure, and seek new opportunities,” said Thrasio CEO Greg Greely.
Thrasio and other aggregators have raised billions of dollars from investors over the past few years. Since its founding, Thrasio has raised investor funds worth US$ 3.4 billion (Rp. 53 trillion). The company also explored going public on the stock exchange through a merger with a SPAC.
Aggregators usually rely on operational expertise data to boost brand sales in ecommerce. However, sluggish sales in e-commerce after the pandemic ended made investors more careful.
In 2022, Thrasio will carry out layoffs which will affect 20 percent of its employees. The company's founder, Josh Silberstein, has also left.
Several startups in Indonesia also run brand aggregator businesses, namely Una Brand, Hypefest, and Bukalapak's Open Labs.
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