Amazon aggregator Thrasio loses CEO, other top execs in bankruptcy

Thrasio, the first aggregator of Amazon third-party sellers, loses its CEO and five other senior executives, months after the former highflier filed for bankruptcy.

Thrasio CEO Greg Greeley informed staff Tuesday that he was considering resigning, according to an internal memo seen by CNBC. Chief financial officer Josh Burke is also leaving the company, as well as the company’s chief technology officer, chief human relations officer, chief commercial officer and head of supply chain.

Stephanie Fox, Thrasio’s chief operating officer, will replace Greeley as CEO. Executives will stay on to ensure a “smooth transition” and then “step down when Thrasio emerges from Chapter 11 in the coming weeks,” Greeley wrote in the memo.

Thrasio has become an early leader in what has become a booming market for acquiring successful brands on Amazon and bringing them under one roof, with the aim of using their data and operational expertise to drive business growth. sales. Thrasio has raised $3.4 billion in equity and debt from major companies like Goldman Sachs, black rock And JPMorgan Chaseand would have reached a peak valuation of around $10 billion in 2021.

Thrasio ranked 22nd on CNBC’s Disruptor 50 list in 2021 and 40th the following year. The company has purchased more than 200 brands, from a best-selling pet deodorizer spray to golf mats and shakers.

But cracks in the market began to form as the pandemic wave of e-commerce faded, unsold inventory piled up and some aggregators took on excessive debt. Thrasio filed for bankruptcy in February and said it had agreed with lenders to restructure some of its debt.

Along with the management shakeup, Thrasio is also laying off “employees at all levels,” according to the memo. The company declined to say what percentage of its workforce would be affected by the reductions. Thrasio had 1,211 employees in 2022, according to Pitchbook.

“The expected revenue trajectory of our portfolio brands does not support our current operating expenses and future interest payments,” Greeley wrote in the note. “So, just as we have restructured our debt to pave the way to profitability, we must also continue our efforts to ensure that Thrasio can meet its financial obligations and effectively serve its customers in the future.”

The company is also considering selling some of its smaller or more complex brands, according to a source familiar with the matter, who requested anonymity to discuss private matters.

In a court filing, Thrasio said it had between $1 billion and $10 billion in assets and between $500 billion and $1 billion in liabilities. He owes, among other things, more than $5 million to U.S. Customs and Border Protection and about $2.9 million to GXO Logistics. Greeley said the company’s operations were “positive in the first quarter.”

Thrasio’s ability to emerge from bankruptcy could be complicated by an ongoing investigation by the Committee of Unsecured Creditors, which is seeking to determine “how the debtors lost more than $3 billion in less than two years,” according to a separate filing filed with the bankruptcy court last. week.

Creditors requested more information about a “2020 insider takeover bid, which resulted in the transfer of millions of estate funds to insiders,” as well as potential conflicts of interest related to the withdrawal of ‘a loan. They are also investigating officers and directors involved in more than $300 million in sales of the company’s stock “that gave rise to allegations of fraud.”

Thrasio had already reshuffled its leadership ranks in 2021, when co-founder Josh Silberstein stepped down. The company laid off about 20% of its employees the following year.

Greeley, a 19-year Amazon veteran who oversaw the development of the Prime loyalty program, was named CEO in 2022, joining a list of executives with experience in Walmart and Amazon, in an attempt to orchestrate a turnaround.

WATCH: Amazon is not only obsessed with the customer but also with the competition