Thrasio, a brand aggregator company in the Amazon ecommerce space, is in the process of bankruptcy.
Brand aggregator companies acquire renowned brands on ecommerce platforms to manage them under one group. This business model resembles that of Unilever or P&G, which manage multiple FMCG brands under one umbrella to enhance distribution and production efficiency.
According to CNBC International, Thrasio has filed for bankruptcy protection in a court in the state of New Jersey.
Thrasio stated that creditors have agreed to slash debts worth $495 million. Some creditors have also committed to providing fresh funds amounting to $90 million, which will be used to continue operations so that the brands under Thrasio can continue selling.
Thrasio is one of the largest third-party merchants on the Amazon marketplace. "With a stronger balance sheet and new capital, we can better support our brands, develop infrastructure, and explore new opportunities," said Thrasio CEO Greg Greely.
Thrasio and other aggregators have raised billions of US dollars from investors in recent years. Since its inception, Thrasio has raised $3.4 billion (IDR 53 trillion) from investors. The company also explored going public through a merger with a SPAC.
Aggregators typically rely on operational expertise data to boost brand sales on ecommerce platforms. However, the slowdown in ecommerce sales after the pandemic has made investors more cautious.
In 2022, Thrasio laid off 20 percent of its workforce, which was impacted by the sales slump. The company's founder, Josh Silberstein, has also departed.
Several startups in Indonesia are also running brand aggregator businesses, including Una Brand, Hypefest, and Open Labs owned by Bukalapak.