Popular Online Retailer Shocks Customers With Sudden Closure

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A popular online retailer has suddenly closed, leaving their customers stunned and hundreds of employees without jobs during the holiday season.

Zulily has shut down and will enter liquidation instead of declaring bankruptcy, Forbes reported Monday (December 25). According to a notice posted on Zulily's website, the Seattle-based company plans on fulfilling all pending orders within the next two weeks. Any orders that cannot be fulfilled will be canceled and refunded.

Customers who do not get their order or refund by January 22, 2024, are encouraged to contact Zulily claims agents with the information provided in the notice.

The retailer entered a receivership through an agreement with Douglas Wilson Companies to “complete an orderly wind-down of the business” and pay off creditors.

"Zulily, LLC and its parent Zulily Group LLC (collectively, 'Zulily') made the difficult but necessary decision to conduct an orderly wind-down of the business to maximize value for the companies’ creditors. This decision was not easy nor was it entered into lightly," Ryan C. Baker, vice president of Douglas Wilson Companies, wrote. "However, given the challenging business environment in which Zulily operated, and the corresponding financial instability, Zulily decided to take immediate and swift action."

The notice continued, "Zulily will strive to continue to provide everyone with the best service possible during the holiday season. We appreciate your patience as we move through this process as swiftly and efficiently as possible."

The online business started in 2010 and originally touted the "Best Price Promise" label on various products catering to families with young children. Investment firm Regent acquired Zulily from Qurate in May this year. The retailer started laying off 800 employees in December as it struggled to compete with Amazon.

Zulily recently filed a lawsuit against its e-commerce rival, alleging Amazon "bullied" the business out of the competition. Then, Zulily was hit with two lawsuits over unpaid invoices.

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