Top Amazon Aggregator Thrasio Delays PSPC Deal As Top Executives Leave
Thrasio, an early leader in the big Amazon aggregator business, had a booth at the popular Prosper Show for Amazon sellers in Las Vegas, Nevada on July 14, 2021.
Thrasio, America’s leading aggregator of third-party Amazon sellers, was rushing to public markets to fuel its rapid expansion. But the company has delayed plans to go public with a PSPC due to complications with its financial audits, according to people with knowledge of the matter.
Thrasio had planned to complete a reverse merger with a special purpose acquisition company by the end of the year, before changing course over the summer, said the people, who asked not to. be named because the plans have not been publicly discussed. The company could still sue a PSPC, but is also considering other financing options, including a traditional IPO, the people said.
C-suite revenue adds to Thrasio’s challenges. CFO Bill Wafford, a former CFO of JC Penney, left Thrasio in July, just three months after joining the company. Thrasio says he has appointed Brian Cooper, chairman of marketing firm Networx, as interim CFO
And last month, co-founder Josh Silberstein stepped down as co-CEO, leaving co-founder Carlos Cashman as the company’s sole CEO.
Bloomberg reported in June that Thrasio was in talks to go public with a merger with a SPAC led by former Citigroup executive Michael Klein at a valuation that could exceed $ 10 billion. The audit process proved to be more difficult than for a typical e-commerce or tech company, as Thrasio now oversees more than 200 Amazon brands, creating a complex balance sheet, the source said.
Daniel Boockvar, the chairman of Thrasio, confirmed to CNBC on Friday that the company has decided not to pursue a SPAC at this time, although he said: “We have never announced any firm plans to go public via SPAC. “
“In the end, our management team and board looked at the market, which is not surprising, and decided that the IPO through PSPC was not the right choice at this time. “Boockvar said in an interview. “We are developing our business incredibly well privately and that is exactly what we will continue to do.”
Boockvar declined to say whether the company is considering an IPO or other funding options in the future, but said “all options are open to us.”
Thrasio, which was founded in 2018, and its peers, like Perch, Heyday and Branded, are growing by purchasing promising products and storefronts, with the aim of using their data and operational expertise to drive sales. At least 77 Amazon aggregators have raised around $ 10 billion in total since April 2020, according to Marketplace Pulse.
Last month, Thrasio said it raised $ 650 million in a senior debt facility, bringing its total debt and equity raised to more than $ 2.3 billion. He now oversees over 200 brands with over 22,000 products in a range of categories, from skin care and camping gear to housewares and fitness products.
Thrasio placed 22nd on CNBC’s Disruptor 50 list this year.
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