FOLLOW-UP COVERAGE: Beyond pays $4.5M to acquire Zulily brand, plans to relaunch retailer later this year … Zulily’s rebirth: Reality TV star Marcus Lemonis on what’s next for e-commerce company
Zulily’s back.
The embattled online retailer, which laid off hundreds of employees last year as part of a surprising shutdown, appears to be relaunching in a remarkable new chapter.
The company’s social media accounts sent a message Wednesday evening: “The only purple that saves you money. Coming soon.”
Marcus Lemonis, the TV star of CNBC reality show The Profit, posted the same message on Wednesday from his own account. His message included “$BYON,” the stock symbol for Beyond, the company previously known as Overstock which acquired the Bed Bath & Beyond brand last year.
Lemonis, named executive chairman of Beyond last month, said in a tweet that Beyond was acquiring Zulily. He also tweeted a photo of Barney on Tuesday with the message “exciting news coming this week.”
A message on Zulily’s homepage reads “coming soon.”
Lemonis later tweeted Wednesday that he’d share more information, including financial details, Thursday morning.
We’ve reached out to Beyond for more details.
Lemonis became famous for helping turn around failing small businesses when he starred on The Profit, which aired for eight seasons from 2013 to 2021. In the episodes, Lemonis tried to fix everything from ice cream shops to shoe brands.
And now, it appears Lemonis finds himself looking to resurrect Zulily.
The e-commerce giant rose to prominence more than a decade ago with a unique flash sales model targeted at women and moms. The Seattle-based company was valued at $4 billion following its IPO a decade ago.
But as GeekWire detailed last month, the company eventually lost its identity and struggled to maintain a competitive moat. QVC parent Qurate acquired Zulily in 2015 for $2.4 billion, but wasn’t able to scale the business and ultimately sold the company to a little known private equity firm called Regent last May.
Regent said it planned to grow the retailer in new markets. Zulily was struggling and unprofitable under Qurate but was still generating cash — more than $300 million through the first five months of 2023, according to Qurate financial reports.
The rapid deterioration under Regent’s ownership came as a shock to more than 800 employees across three states who lost their jobs, and to vendors around the country who said they weren’t getting paid.
In a surprising move amid its shutdown, Zulily filed a lawsuit against Amazon in December, alleging price-fixing and supplier coercion. The ongoing lawsuit is based in part on allegations in the Federal Trade Commission’s separate antitrust lawsuit against Amazon.
Regent put Zulily in liquidation a few weeks later in December as part of an agreement with a third-party fiduciary operating under the name of Zulily ABC LLC, a subsidiary of a San Diego-based firm called Douglas Wilson Companies that specializes in receiverships and liquidating assets of troubled companies.
In January, Gordon Brothers, a 121-year-old global firm that orchestrates liquidations and restructuring, announced it was selling off more than $85 million of Zulily’s unsold shoes, clothes, accessories, housewares and other items.
Then last month, Hilco Streambank, a New York company that specializes in selling intangible assets, announced it was seeking offers to acquire Zulily’s brand assets. Hilco said Zulily generated $666 million in sales last year from 2.5 million shoppers.
A small group of Zulily employees remained at the company through the liquidation process. It’s not clear how many are currently employed and if they’re staying aboard under new ownership.
Bed Bath & Beyond, the longtime chain retailer that specialized in housewares, filed for Chapter 11 bankruptcy last year. Overstock, based in Midvale, Utah, acquired its intellectual property for $21.5 million in June and rebranded to Beyond.
Bed Bath & Beyond no longer has physical stores but still sells products online, as does Overstock.com.
Former Walmart e-commerce leader and Conn’s HomePlus CEO Chandra Holt was named CEO of Bed Bath & Beyond last month. Longtime executive Jonathan Johnson stepped down as CEO in November. He had replaced Overstock founder Patrick Byrne, who resigned in 2019 after disclosing that he had a romantic relationship with a Russian agent.
Beyond reported full-year revenue of $1.6 billion in 2023, down 19% year-over-year, and a net loss of $308 million. Active customers grew 9% to 5.6 million. The company’s stock is up more than 70% in the past six months.
Lemonis joined the Beyond board in October and was named chairman in December.
“It is our goal to achieve $2 billion of revenue in 2024, and a $3 billion revenue run rate by the end of 2025,” he said in a statement last month. “This projected revenue improvement, coupled with improved margins and a reduced expense structure provides a clear path to profitability.”
Lemonis is also currently chairman and CEO of Camping World Holdings. He starred in another reality show that aired on HGTV in 2022 called The Renovator, which focused on helping homeowners improve the value of their home.
