Ownership of Seattle e-commerce retail company Zulily is changing hands again.
Qurate, which paid $2.4 billion to acquire Zulily in 2015, said last week it sold the retailer to Los Angeles-based private equity firm Regent. The companies did not disclose a purchase price.
Qurate CEO David Rawlinson said the move was part of the company’s “turnaround.”
“This divestiture will allow our management team to better focus on our core video commerce assets, QVC and HSN, and the Cornerstone Brands, while preserving liquidity to further strengthen our balance sheet,” he said in a statement.
Zulily reported a 17% drop in revenue during the first quarter, to $192 million, and a $43 million operating loss. Qurate cited lower unit volume and a reduction in shipping revenue “largely driven by reduced traffic to the site.” Zulily revenue dropped 28% in the fourth quarter.
Qurate’s overall revenue decreased 8% to $2.6 billion in the first quarter.
Regent chairman Michael Reinstein said his firm plans to grow Zulily’s business in new markets.
“We are excited to partner with the Zulily team to help the company return to its entrepreneurial roots as an independent business,” he said in a statement. Regent’s portfolio includes Club Monaco, Dim Paris, and Redline Bicycles.
Zulily laid off employees in March to help cut costs, and had another round of layoffs a year ago.
The company last year hired former Nordstrom exec Terry Boyle as president and CEO. Boyle replaced Jeff Yurcisin, the former Amazon executive and Shopbop CEO who took over in May 2018 for longtime CEO and co-founder Darrell Cavens.
Zulily has around 750 employees in the Seattle area, according to LinkedIn. We reached out to the company for an updated headcount and about any impact from the acquisition.
Founded in 2010, Zulily went public in 2013. The company got its start by offering daily deals on products for moms and kids, and later expanded its product selection.
As part of the deal, Qurate said it repaid off about $80 million in Zulily’s debt, and that it has potential to receive earnout in future years.
