Zulily is laying off employees and closing three offices — including its Seattle headquarters — according to internal communications obtained by GeekWire and a new filing with the state of Washington.
It’s the latest chapter in a stunning downfall for a company that was once a crown jewel of Seattle’s tech scene.
In February of next year, Zulily plans to shut down warehouses in McCarran, Nev., and Lockbourne, Ohio, in addition to its Seattle headquarters, according to internal communications.
A new filing with the Washington state Worker Adjustment and Retraining Notification (WARN) system shows 292 employees in Seattle being laid off as part of a closure. Update: Zulily will lay off more than 500 employees as part of the warehouse shutdowns in Nevada and Ohio.
Zulily already went through two rounds of layoffs this year after Los Angeles-based private equity firm Regent acquired the online retailer in May from QVC parent Qurate.
It also moved into a smaller headquarters building in Seattle following Regent’s purchase.
GeekWire reported earlier Thursday on two lawsuits filed against Zulily by a logistics company and a software development consultancy in recent months, both alleging unpaid invoices.
GeekWire also reported in September about vendors who sold products to Zulily and weren’t getting paid following the Regent acquisition.
Zulily did not provide severance for employees who were let go in June, according to affected workers.
In October, former CEO Terry Boyle announced internally his decision to leave the company, effective Oct. 31.
Founded in 2010 by former Blue Nile executives Darrell Cavens and Mark Vadon, Zulily got its start by offering daily deals on products for moms and kids, and later expanded its product selection. The company used an unusual business model, selling products on its site before ordering them from vendors.
Zulily raised investment from backers like Andreessen Horowitz and Maveron, and grew rapidly, reporting revenue of $331 million in 2012. It went public in 2013 with a spectacular IPO that valued the company at around $4.5 billion.
Qurate paid $2.4 billion to acquire Zulily in 2015.
The company remained prominent in the Seattle area, inking a jersey sponsorship deal in 2019 with the Seattle Sounders and Reign FC pro soccer clubs.
Zulily was struggling under Qurate before the sale to Regent. It reported a 17% drop in revenue during the first quarter, to $192 million, and a $43 million operating loss.
In a May press release announcing its acquisition, Regent said it planned to grow Zulily’s business in new markets. That press release has been removed from Regent’s website as of Thursday afternoon.
Jane.com, a Salt Lake City company that used a similar model to Zulily, collapsed last month.
We’ve followed up with Regent and will update this story if we hear back.
