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Just seven months after its acquisition by a California-based investment firm, Regent, Zulily (ZU) has announced the closure of its business. The online retailer, initially aimed at young mothers, has started its final sale, indicating the end of its operations. The closure will result in the shutting down of distribution centers in Ohio, Nevada, and Massachusetts, as well as the company's Seattle headquarters.
Founded in 2010, Zulily expanded its product range from children’s apparel to include women’s fashion, shoes, home décor, toys, and gifts. The company experienced significant growth, going public in 2013 with over $300 million in annual revenue. In 2015, Liberty Interactive, then the parent company of QVC, acquired Zulily in a deal that valued the brand at $2.4 billion. However, in May 2023, Liberty’s successor, Qurate Retail Group, sold Zulily to Regent.
Before the last acquisition, Zulily had been facing financial challenges. The company’s revenues in 2022 showed a 38% decline, dropping to $906 million and falling below the $1 billion mark for the first time in several years. This downturn was accompanied by significant operating losses, with the company reporting a loss of $469 million in 2022, following a loss of $539 million in 2021. These financial difficulties have led to the recent decision to cease operations, affecting employees and operations across various locations.