Thrasio, a leading player in the Amazon aggregator arena, is experiencing a major leadership overhaul and restructuring as it navigates Chapter 11 bankruptcy proceedings. Greg Greeley, Thrasio’s Chief Executive Officer (CEO), recently notified staff of his decision to resign. According to an internal memo obtained by CNBC, Thrasio’s Chief Financial Officer (CFO) Josh Burke, along with the company’s Chief Technology Officer (CTO), Head of Human Relations, Chief Commercial Officer (CCO), and Supply Chain Lead, are also departing. Stephanie Fox, Thrasio’s Chief Operating Officer (COO), will assume the CEO role upon Greeley’s departure. The executives leaving the company will remain until a smooth leadership transition is ensured, and then they will formally step down once Thrasio emerges from Chapter 11 proceedings in the coming weeks, as stated by Greeley in the internal memo.
Thrasio has ranked among the top performers in the rapidly growing Amazon aggregator market, acquiring successful brands and consolidating them under a single entity. By leveraging their data and operational expertise, Thrasio aimed to amplify sales and growth. The company secured $3.4 billion in equity and debt financing from notable firms such as Goldman Sachs, BlackRock, and JPMorgan Chase, achieving a peak valuation of approximately $10 billion in 2021. Thrasio’s strong performance earned it a spot on CNBC’s Disruptor 50 list, ranking 22nd in 2021 and 40th in 2022. The company added over 200 brands to its portfolio, spanning a range of products from pet deodorizer spray and golf putting mats to cocktail shakers.
However, cracks began to emerge in the aggregator market as the pandemic-driven e-commerce boom subsided, unsold inventory accumulated, and some aggregators, including Thrasio, took on excessive debt. This culminated in Thrasio’s Chapter 11 bankruptcy filing in February. The company subsequently entered into agreements with lenders to restructure a portion of its debt. Concurrent with the executive shakeup, Thrasio is implementing layoffs at various levels within the organization. While the company declined to disclose the exact percentage of its workforce affected, PitchBook data indicates that Thrasio employed 1,211 individuals as of 2022.
In an internal memo, Greeley explained that the projected revenue trajectory from the brands in Thrasio’s portfolio cannot sustain the company’s current operating expenses and future interest payments. He emphasized the need to further reduce expenses to align with Thrasio’s financial obligations and ensure efficient customer service in the future. Sources familiar with the matter suggest that the company is contemplating the sale of some of its smaller or more complex brands. According to court documents, Thrasio’s assets range between $1 billion and $10 billion, while its liabilities fall between $500 million and $1 billion. Among its creditors, Thrasio owes over $5 million to U.S. Customs and Border Protection and approximately $2.9 million to GXO Logistics.
Greeley reported that the company’s operations generated positive cash flow in the first quarter of 2023. Thrasio’s ability to successfully emerge from bankruptcy may be influenced by an ongoing investigation launched by the Unsecured Creditors Committee. The committee seeks to determine how Thrasio lost over $3 billion in value in under two years, as stated in a separate filing submitted to the bankruptcy court last week. The creditors are seeking additional information regarding a 2020 insider tender offer, which resulted in the transfer of millions of estate funds to insiders. Potential conflicts of interest related to loan repayments are also being investigated. The committee is further inquiring into stock sales by officers and directors, amounting to over $300 million, which have raised allegations of fraud.
Thrasio has undergone leadership changes in the past, including the 2021 resignation of co-founder Josh Silberstein. The company subsequently laid off approximately 20% of its workforce the following year. Greeley joined Thrasio as CEO in 2022, bringing with him 19 years of experience at Amazon, where he oversaw the development of the Prime loyalty program. He joined several other executives with experience at Walmart and Amazon, aiming to lead a turnaround for Thrasio.
