Seattle’s renowned online retail giant, Zulily, appears to have reached its final chapter, signaling its closure through statements on the company’s website on Saturday. The startling announcement follows a wave of layoffs that affected more than 800 employees, including 292 in the Seattle area, and included reported closures of offices and facilities in Seattle, Nevada, and Ohio.
Despite efforts to reach out to Zulily and its parent company, Los Angeles-based private equity firm Regent, on Friday, The Seattle Times was unable to secure a response, leaving the retailer’s fate uncertain. However, recent updates on the website, initially reported by GeekWire, indicate the definitive end of a 13-year-old company that once stood as a significant presence in the tech industry.
“This has been a long time coming,” remarked Albert Squiers, who oversees technology recruitment at Seattle-based Fuel Talent, in response to news of the layoffs on Friday.
Founded in 2010 by former Blue Nile executives Mark Vadon and Darrell Cavens, Zulily initially carved its niche by spotlighting children’s apparel through a unique business model. The company engaged in thousands of multiday flash sales annually, marketing various vendors’ products, often shipping items directly from suppliers or from Zulily’s fulfillment centers.
Zulily experienced meteoric growth, going public in 2013 with a market valuation of around $7 billion. However, sustaining that early success proved challenging. In 2015, it was acquired by Liberty Interactive-QVC (now Qurate) for a reported $2.4 billion, far below its peak market value.
With mounting pressures from rivals like Amazon, Zulily’s performance waned, leading to staff cuts under Qurate’s ownership. The downward trajectory continued even after Regent’s acquisition in May for an undisclosed sum.
The recent announcements of closures and the abrupt going-out-of-business sale spell the end for the once-lauded e-commerce powerhouse. The closure leaves hundreds of employees in limbo, especially disheartening during the holiday season.
Additionally, vendors like Lisa Nemiro, owner of a Los Angeles-based fashion company, ToBeInStyle, reportedly remain unpaid, adding another layer of distress to Zulily’s closure.
The downfall of Zulily, a brand once valued at billions, has sparked reflections and farewells among current and former employees. Many took to LinkedIn to share sentiments about their time at the company, highlighting the impact Zulily had on their professional lives.
Despite Zulily’s pivotal role in the Seattle tech ecosystem and its cultural impact, its rapid downfall serves as a stark reminder of the challenges in the ever-evolving e-commerce industry. As the company shuts its doors, it marks the end of an era, leaving a void in Seattle’s business landscape.
Efforts to reach out to Zulily and Regent for comment on the situation remain ongoing.
