Zulily
| Company type | Subsidiary (formerly public) |
|---|---|
| Industry | Online retail |
| Founded | 2009 |
| Founder | Darrell Cavens, Mark Vadon |
| Defunct | 2023 |
| Fate | Intellectual property acquired by Beyond, Inc. in 2024; company shut down |
| Headquarters | Midvale, Utah (formerly Seattle, Washington) , United States |
Area served | United States, Canada, United Kingdom, Ireland, Australia |
Key people | David Nielsen (CEO), Marcus Lemonis (Chairman), Terry Boyle (former CEO) |
| Products | Apparel for women and children, toys, infant products, home furnishings |
Number of employees | Over 800 laid off in 2023 before closure |
| Parent | Liberty Interactive (2015–2023), Regent, L.P. (2023) |
Zulily is a U.S.-based online retail enterprise located in Midvale, Utah, catering primarily to young mothers searching for well-known children's brands. Established by Darrell Cavens and Mark Vadon, Zulily focuses on apparel for women and children, toys, infant products, and home furnishings, utilizing flash sale alerts as a core aspect of its commercial approach.
The company served customers across regions such as the United States, Canada, United Kingdom, Ireland, and Australia. In 2016, Zulily generated $366 million in revenue but experienced net losses, including a $10.33 million deficit reported in 2012. Leadership figures have included CEO David Nielsen and Chairman Marcus Lemonis.
Once a division of Liberty Interactive from 2015 until 2023, Zulily’s intellectual property was purchased by rival firm Beyond, Inc. in March 2024 for $4.5 million in cash following the shutdown of its website. This acquisition represents a strategic effort to relaunch the brand under new management within the competitive landscape of online retail.
Overview
Before halting operations in 2023, Zulily functioned without maintaining inventory, shipping goods owned by vendors directly from fulfillment centers or through drop shipping to consumers. Its sales typically spanned 72 hours with daily promotional discounts. By 2014, mobile devices accounted for half of all orders.
On March 7, 2024, Beyond Inc. secured ownership of Zulily’s intellectual property, setting the stage for a brand revival alongside Beyond’s relaunch of Overstock.
History
Zulily was founded in 2009 by former Blue Nile executives Mark Vadon and Darrell Cavens and officially launched in January 2010 with an emphasis on children’s clothing. By the fourth quarter of 2010, it had achieved positive cash flow. Early tactics included sending flash sale notifications via early-morning emails; by 2012, membership exceeded 10 million.
At its initial public offering in November 2013, Zulily reported revenues of $331 million and had 2.6 million active users, with a market valuation of $2.6 billion. The company’s model avoided holding large stockpiles by purchasing inventory only after receiving customer orders.
In August 2015, Liberty Interactive’s QVC division acquired Zulily for $2.4 billion. Two years later, in September 2017, Zulily launched its own private label credit card. By January 2019, the company became a sponsor of local soccer teams Seattle Sounders FC and Reign FC.
Following significant revenue declines and multiple rounds of layoffs, Qurate Retail sold Zulily to Regent, L.P. in May 2023. Later that year, the company relocated its Seattle headquarters from Belltown to Pioneer Square as part of downsizing efforts.
In December 2023, after more than 800 employees were laid off within seven months under new ownership, Zulily announced a liquidation sale amid intense competition from Amazon and other major players. Instead of filing for bankruptcy, the company initiated an assignment for the benefit of creditors (ABC), with Douglas Wilson appointed to oversee the closure through Zulily ABC, LLC.
Wind down
In early December 2023, Zulily announced the termination of 292 staff members in Seattle amid several lawsuits and CEO Terry Boyle’s departure. Additionally, it eliminated 547 warehouse positions across Nevada and Ohio. On December 9, the company commenced a "going-out-of-business" sale indicating imminent shutdown.
By December 18, Zulily had taken down its website and app while customer service ceased operations; further layoffs took place on December 20. On December 22, Douglas Wilson Companies was named assignee under an assignment for the benefit of creditors (ABC), managing asset liquidation and business closure as an alternative to bankruptcy proceedings. This development marked the conclusion of Zulily’s business activities and efforts to address creditor claims.
Business model
In 2015, the company scaled back the frequency of flash sales to alleviate customer frustration caused by an overwhelming selection of products. Maintaining customer loyalty proved difficult as the surge in available deals began to dilute shopper interest. While first-quarter revenue in 2015 increased by 29% compared to the same period the previous year, this growth rate was slower than the 52% rise experienced in late 2014, leading to a downward adjustment of revenue projections for the full year.
Although the company had previously asserted it did not hold inventory, it started warehousing certain products in 2015 to enhance delivery efficiency. Earlier absence of inventory management contributed to issues such as faulty or incorrect items, which necessitated refunds or complimentary replacements. The assortment of products broadened to feature both well-known and emerging brands, strengthening its market presence and competitive edge.