Amazon aggregator Thrace also loses CEO, other top executives in bankruptcy

Thraceo, an early leader in Amazon aggregators, has a booth at the popular Amazon Seller Prosper Show on July 14, 2021 in Las Vegas, Nevada.

Katie Scalf

Thraceo, the top aggregator the amazon A third-party vendor, its CEO and five other top executives are leaving just months after the former high-flying company filed for bankruptcy.

According to an internal memo seen by CNBC, Thraceo CEO Greg Greeley notified employees on Tuesday that he plans to resign. Finance chief Josh Burke will also leave, along with the company’s chief technology officer, chief human resources officer, chief commercial officer and supply chain chief.

Thraceo will succeed COO Stephanie Fox Greeley as CEO. Greeley wrote in the memo that executives would continue to ensure a “smooth transition” and then “step down next week when Tracy also emerges from Chapter 11.”

Thraceo became an early leader in a fast-growing market, acquiring successful brands on Amazon and consolidating them under one roof, with the goal of leveraging their data and operational efficiencies to drive sales. Raised $3.4 billion in equity and debt from major companies, including Thraceo Goldman Sachs, black stone And JP MorganThe alleged peak valuation reached around 10 billion USD in 2021.

Thrasso is also ranked 22nd on CNBC’s Disruptive 50 list for 2021 and 40th next year. The company has acquired more than 200 brands, from best-selling pet odor sprays to golf putting mats and cocktail shakers.

But as the pandemic e-commerce boom fades, unsold inventory piles up and some aggregators take on too much debt, cracks in the market are beginning to appear. trasio files for bankruptcy It also said it had reached an agreement with creditors to restructure part of its debt burden. .

In addition to the executive changes, Thraccio is 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 layoffs. Thrasio had 1,211 employees as of 2022, according to Pitchbook.

“The projected revenue trajectories of the brands in our portfolio are unable to support our current operating expenses and future interest payments,” Greeley wrote in the memo. Downsizing is necessary to ensure that customers can be served effectively.”

The company is also considering selling some of its smaller or more sophisticated brands, said a person familiar with the matter who asked not to be identified to discuss personal matters.

Thraceo said in court filings that he has $1 billion to $10 billion and liabilities of between $500 million and $1 billion. Among other debts, the company owes 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 “cash flow positive in the first quarter.”

Thrasso’s ability to emerge from bankruptcy could be complicated by an ongoing investigation by the Committee of Unsecured Creditors, which seeks to determine “how the debtor lost money in less than two years,” worth more than $3 billion in a separate bankruptcy court filing last year.

Creditors requested more information about an insider tender offer in 2020 that diverted millions in estate funds to insiders and about potential conflicts of interest related to debt defaults. They questioned executives and directors involved in the sale of more than $300 million worth of company stock, “which gave rise to allegations of fraud.”

Thrasso had previously overhauled its leadership after co-founder Josh Silberstein resigned in 2021. The company is laying off about 20% of its employees next year.

Greeley, a 19-year Amazon veteran who oversaw the development of the Prime loyalty program and was named CEO in 2022, joins a group of executives with deep Amazon experience in Join Us Together. Walmart And Amazon, trying to engineer a change.

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