Prominent Amazon merchant aggregator Thrasio declares bankruptcy

Amazon seller Thrasio filed for Chapter 11 bankruptcy in New Jersey, seeking a reorganization plan with lenders to reduce debt by $495 million and postpone interest payments.

On Wednesday, a significant Amazon third-party seller filed for Chapter 11 bankruptcy protection in a New Jersey court. The Walpole, Massachusetts-based Thrasio is requesting that the court supervise a reorganization plan with its lenders that would enable it to reduce its debt by approximately $495 million and postpone interest payments for a year following its declaration of bankruptcy.

Thrasio is an example of an Amazon aggregator — companies that purchase the smaller, independent Amazon merchants who account for the majority of sales on the industry's leading e-commerce platform.

During the COVID-19 outbreak, aggregators raised substantial amounts of money from investors hoping to profit from Amazon merchants due to the spike in online sales. However, once the pandemic subsided and consumers started making more in-person purchases or diverted their spending toward other activities like dining and tourism, that growth decreased. Benitago, an additional Amazon aggregator, declared bankruptcy last year.

Thrasio stated in its application that it has pledges from lenders for new financing totaling up to $90 million. It lists assets and liabilities up to $10 billion and $1 billion, respectively.

Thrasio is one of the biggest third-party sellers on the Amazon marketplace, and according to a statement from CEO Greg Greeley, they will be better able to serve their brands, grow their infrastructure, and seize future possibilities with a strengthened balance sheet and additional liquidity.