Thrasio, a startup that rolls up third-party sellers on Amazon, on Wednesday said it has filed for Chapter 11 bankruptcy protection and entered a restructuring agreement that includes reduced debt and fresh capital.

The bankruptcy filing marks a dramatic reversal for Thrasio, which once bore a $10 billion valuation after raising $3.4 billion from investors including Silver Lake, Oaktree Capital Management and Goldman Sachs Asset Management.

Thrasio is the largest among a group of businesses known as “Amazon aggregators” that buy and consolidate third-party sellers on large e-commerce platforms. Other similar businesses that have raised millions from investors include Perch (more than $908 million in total funding), Elevate Brands ($372.5 million), Branded Group ($150 million) and Boosted Commerce ($137 million).

Such companies benefited from the boom in online retail kicked off by the COVID-19 pandemic — Thrasio told Crunchbase News in April 2020 after its Series B raise that it was profitable and growing fast —  but many saw their businesses begin to falter as consumers resumed their normal shopping habits.

Thrasio conducted layoffs and saw executive departures including a CEO change in 2022.

The Walpole, Massachusetts-based company said in a statement Wednesday that it had received commitments for $90 million in new financing from existing shareholders. It also said it had entered into a restructuring agreement with some of its lenders that will reduce its debt by $495 million.

In its bankruptcy filing, Thrasio listed estimated assets in the range of $1 billion to $10 billion and estimated liabilities of $500 million to $1 billion, according to Reuters.

It will continue to operate its business as it works through the bankruptcy process.

“Thrasio is one of the largest third-party sellers on the Amazon marketplace, and with a strengthened balance sheet and new capital, we will be better equipped to support our brands, scale our infrastructure and enable future opportunities,” company CEO Greg Greeley said in the statement.

Related reading:

• E-Commerce Marketplace Aggregators Are Hot On Thrasio’s Heels As Companies Raise $2.3B
• Meet Thrasio, A Profitable Startup That Just Raised $110M At A $780M Valuation
• Thrasio Gets Its Horn: $260M Series C Round Provides $1B Valuation
• Thrasio, Branded Bag Mega Funding Rounds For Amazon Retailer Rollups

Illustration: Li-Anne Dias