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Friday, January 12, 2024

Curious case of Zulily Shutdown

On May 24th, 2023, Qurate Retail announced that Regent, an investment firm based in Los Angeles with expertise in retail and apparel sectors, acquired Zulily. As part of the transaction, Qurate repaid $80 million at the closing. Following the acquisition, Zulily experienced multiple rounds of layoffs, reduced bonuses, and the cancellation of the 401k plan. On December 7th, 2023, a WARN notice was issued, stating that layoffs would commence on February 7th, 2024. Another round of layoffs affected over 292 employees on December 13th. On December 15th, the Zulily website went down for maintenance, causing disruption to customer orders, including Christmas presents.

On December 17th, it was announced that the business would be shut down, and some employees would be retained for the liquidation process. Several employees did not receive severance pay, and due to the early shutdown announcement, many were unable to use their PTO or receive compensation. The premature announcement also adversely affected non-immigrant visa holders, reducing their grace period and forcing them to seek employment before the holidays, without eligibility for unemployment benefits.

Subsequently, Zulily has been handed over to a liquidator with a new name, Zulily ABC, to benefit creditors. Zulily has filed a case against Amazon.

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