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Last week, it was reported that Seattle-based e-commerce company Zulily is planning on laying off over 300 people from its headquarters, effective February 2024. The news was first published by the Washington-based Employment Security Department.
In the wake of this news, the company’s official website announced over the weekend that they were closing down business soon and would wrap it up by organizing a “going-out-of-business sale.” The move to closure comes amidst declining revenue for the online retailer in the last few years and its inability to contend with its main competitor and e-commerce giant, Amazon.
Meanwhile, the company filed a lawsuit against Amazon because the latter “has caused Zulily substantial revenue losses and reduced traffic to Zulily’s website" and “denies Zulily the scale necessary to compete in the market” by discouraging suitable price competition and supplier relationships, as reported by Geek Wire. The suit was filed in U.S. District Court in Seattle on Monday, December 11.
Everything you need to know about Zulily’s going out of business
Recently, American e-commerce site Zulily declared that they were soon going to close down the business and also lay off over 300 employees in its Pioneers Square headquarters office in Seattle. The FAQ on its website added that before closure, it will conduct a going-out-of-business sale, deemed “FINAL SALE: All items must go."
Founded in 2009, the company, although it began its business in Seattle, soon spread across the USA and later worldwide. However, in the post-pandemic years, it has been incurring revenue losses, thus resulting in mass layoffs, including the elimination of a few corporate positions.
Not only that, but Kiro 7 reported that the online retailer even put many of its office spaces, such as the one in Belltown, on the rental market recently. Reno Gazette Journal reported that the company’s Northern Nevada distribution center will also close down, resulting in more layoffs.
As per the news outlet, the e-commerce website even filed a notice with the Nevada State Government earlier this month stating that its Tahoe Reno Industrial Center will be permanently shut down on February 7, 2024, leading to the termination of 273 employees.
The company also filed a similar Worker Adjustment and Retraining Notification (WARN) in Ohio (Lockbourne distribution center) and Washington (Seattle facility), as per the media source. 274 and 292 employees will lose their jobs, respectively. For those unaware, a WARN requires firms to notify the state about mass layoffs involving 100 people or more with at least a 60-day notice period.
Reno Gazette Journal also reported that Zulily’s final sale will have non-returnable and non-refundable policies. In fact, the online retailer’s official website clearly states that items bought before December 8, 2023, are eligible for return and refund.
Zulily over the years
Launched in 2009 by Mark Vadon and Darrell Cavens, former executives of Blue Nile, the online jewelry retailer, Zulily first opened its fulfillment center in Northern Nevada in 2011 with 400 employees. A year later, it opened its Ohio facility. Back then, it only sold maternity and kids products.
Reno Gazette Journal also reported that the e-commerce firm later expanded its customer base and closely began competing with Amazon. By 2013, it had an estimated value of $2.6 billion and an active customer base comprising 12.6 million people globally.
In 2014, it expanded its Northern Nevada facility with 1000 more employees and later added 600 more staff members. The same year, it also opened a new distribution center in Bethlehem, Pennsylvania.
Unfortunately, since 2015, the company’s revenue began seeing a decline following which it was purchased by Liberty Interactive-QVC or Qurate for $2.4 billion. However, it still continued to struggle and was forced to lay off 500 employees last year and close down the Pennsylvania facility.
Earlier this year, the company, which was once valued at $7 billion (during its peak) was acquired by Regent, a Los Angeles-based private equity firm, and its current owner. According to Bizbuzz, Zulily’s CEO Terry Boyle resigned in October 2023.
