Thrasio, once the dominant force in e-commerce aggregation, files for Ch.11 bankruptcy

Thrasio, a prominent U.S. startup known for its strategy of acquiring and restructuring smaller e-commerce brands, has initiated its own restructuring by filing for Chapter 11 bankruptcy protection. This move comes as the company seeks to address its significant debt burden. As part of the restructuring efforts, Thrasio has secured $90 million in emergency financing from existing lenders, although the lenders remain unnamed.

Having raised over $3 billion in equity and debt to support its expansion strategy, Thrasio’s bankruptcy filing represents a notable example of the challenges faced by high-growth tech companies in recent times.

Under the restructuring support agreement, a majority of Thrasio’s revolving credit facility lenders and term loan lenders have agreed to the terms, resulting in the elimination of approximately $495 million of existing debt. Additionally, all interest payments will be deferred for the first year following emergence from Chapter 11.

The $90 million in new capital is intended to provide liquidity to sustain the company throughout the restructuring process and beyond. This financing will facilitate the continued operation of Thrasio’s brands, support ongoing business activities, and offer access to additional capital upon emerging from Chapter 11 to support future operations.