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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The hard reality of corporate restructuring and its significant effects on employees are reflected in Zulily's closure after being acquired by Regent. Many workers experienced financial and emotional distress as a result of layoffs, benefit reductions, and severance cancellations. Issues were made worse by the early closure notice, especially for non-immigrant visa holders who had few choices at a crucial time. Holiday orders that were canceled or delayed caused additional hassles for customers. All things considered, the case emphasizes the wider effects that abrupt business choices have on both workers and customers.
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