Amazon aggregator Thrasio loses CEO, other executives in bankruptcy

Thrasio, the ultimate aggregator of Amazon third-party sellers, is losing its CEO and five other top executives, months after the former top executive filed for bankruptcy.

Greg Greeley, Thrasio’s CEO, informed employees on Tuesday that he plans to resign, according to an internal memo reviewed by CNBC. CFO Josh Burke is also leaving, along with the company’s chief technology officer, head of human relations, chief commercial officer and head of supply chain.

Stephanie Fox, Thrasio’s COO, will replace Greeley as CEO. Executives will stay on to ensure a “smooth transition” and then “step down as Thrasio exits Chapter 11 in the coming weeks,” Greeley wrote in the note.

Thrasio became an early leader in what has become a fast-growing market to acquire successful brands on Amazon and combine them under one roof, with the goal of using their data and operational expertise to turbocharge sales. Thrasio has raised $3.4 billion in equity and debt from major firms such as Goldman Sachs, Black stone and JPMorgan Chaseand reportedly reached a peak rating of about 10 billion dollars in 2021

Thrasio was ranked 22nd on CNBC’s Disruptor 50 list in 2021 and 40th the following year. The company snapped up more than 200 brands, from its best-selling pet deodorizing spray to golf mats and cocktail shakers.

But cracks began to form in the market as the pandemic surge in e-commerce faded, unsold inventory piled up and some aggregators took on too much debt. Thrasio filed for bankruptcy in February and said it had agreed with creditors to restructure some of its debt.

Along with the C-suite shuffle, Thrasio is also laying off “employees at every level,” according to the memo. The company declined to say what percentage of the workforce would be affected by the layoffs. Thrasio has 1,211 employees as of 2022, according to Pitchbook.

“The projected revenue trajectory from the brands in our portfolio does not support our current operating expenses and future interest payments,” Greeley wrote in the note. “So just as we restructured our debt to pave the way to profitability, we also need to lean further to ensure Thrasio can meet its financial obligations and serve customers effectively in the future.”

The company is also considering selling some of its smaller or more complex brands, according to a source familiar with the matter, who spoke on condition of anonymity to discuss personal matters.

In a court filing, Thrasio said it has between $1 billion and $10 billion in assets and between $500 million and $1 billion in liabilities. It owes more than $5 million to U.S. Customs and Border Protection and approximately $2.9 million to GXO Logistics, among other debts. Greeley said the company’s operations were “cash flow positive in Q1.”

Thrasio’s ability to emerge from bankruptcy could be complicated by an ongoing investigation by the Committee of Unsecured Creditors, which seeks to determine “how the debtors lost more than $3 billion in value in less than two years,” according to a separate filing with the court on bankruptcy last year week.

Lenders have asked for more information on “a 2020 insider auction offer that resulted in the transfer of millions in property funds to insiders,” as well as potential conflicts of interest with the loan withdrawal. They are also asking about officers and directors involved in more than $300 million in sales of company stock “that gave rise to allegations of fraud.”

Thrasio previously reviewed his leadership ranks in 2021, when co-founder Josh Silberstein stepped down from his role. The company laid off about 20% of its employees next year.

Greeley, a 19-year Amazon veteran who led the development of the Prime loyalty program, was named CEO in 2022 and along with a set of executives who had experience in Walmart and Amazon, tried to stage a turnaround.