Thrasio, a prominent aggregator of Amazon third-party vendors, is losing its CEO and five other senior executives, following its bankruptcy filing.
Thrasio’s CEO, Greg Greeley, informed employees on Tuesday that he intends to retire, according to an internal memo obtained by CNBC. Josh Burke, the company’s finance leader, is also going, as are the technology chief, head of human relations, chief commercial officer, and supply chain lead.
Stephanie Fox, Thrasio’s Chief Operating Officer, will succeed Greeley as CEO. The executives will continue on to guarantee a “smooth transition” before “stepping down when Thrasio emerges from Chapter 11 in the coming weeks,” according to Greeley’s memo.
Thrasio was an early pioneer in what became a fast growing market for acquiring strong Amazon businesses and consolidating them under one roof, with the purpose of leveraging their data and operational skills to boost sales. Thrasio raised $3.4 billion in stock and loans from Goldman Sachs, BlackRock, and JPMorgan Chase, with a peak valuation of around $10 billion in 2021.
Thrasio finished 22nd on CNBC’s Disruptor 50 list in 2021 and 40th the following year. The corporation acquired over 200 products, including a best-selling pet deodorizer spray, golf putting mats, and cocktail shakers.
However, as the pandemic e-commerce spike receded, unsold material accumulated, and some aggregators incurred significant debt. Thrasio filed for bankruptcy in February, saying it had reached an agreement with lenders to restructure some of its debt.
Along with the C-suite shakeup, Thrasio is firing off “employees at every level,” according to the memo. The corporation refuses to identify how many of its employees will be affected by the cuts. Thrasio had 1,211 employees in 2022, according to Pitchbook.
‘Need to thin down further.’
“The predicted revenue trajectory from the brands in our portfolio does not support our current operating expenses and future interest payments,” Greeley said in the note. “So just as we’ve restructured our debt to pave the way to profitability, we also need to slim down further to ensure Thrasio can meet its financial obligations and serve customers effectively in the future.”
According to a source familiar with the situation, the corporation is also considering selling off some of its smaller or more difficult brands. The source asked anonymity to discuss private concerns.
Thrasio stated in a court filing that its assets ranged from $1 billion to $10 billion, with liabilities ranging from $500 million to $1 billion. It owes about $5 million to US Customs and Border Protection and around $2.9 million to GXO Logistics, among other obligations. Greeley stated that the company’s operations were “cash flow positive in Q1.”
Thrasio’s ability to exit from bankruptcy may be hampered by an ongoing investigation by the Unsecured Creditors Committee, which wants to establish “how the debtors lost over $3 billion in value in less than two years,” according to a separate bankruptcy court filing last week.
The creditors have asked for further information about a “2020 insider tender offer, which resulted in millions of estate funds being transferred to insiders,” as well as potential conflicts of interest related to loan retirement. They’re also looking into officers and directors who were engaged in over $300 million in firm stock sales “that has given rise to allegations of fraud.”
Thrasio previously restructured its executive team in 2021, when co-founder Josh Silberstein quit. The corporation laid off approximately 20% of its staff the following year.
Greeley, a 19-year Amazon veteran who led the establishment of the Prime membership program, was named CEO in 2022. He and a team of executives with experience from Walmart and Amazon attempted to organize a turnaround.
Amazon aggregator Thrasio loses CEO, other top execs as company works through bankruptcy
