Vendors working with Seattle e-commerce company Zulily say they are owed thousands of dollars in unpaid invoices.
Megan Neugebauer, owner of Shop Resin Molds in Paragould, Ark., told GeekWire she hasn’t been paid since May. That’s when Qurate sold Zulily to Los Angeles-based investment firm Regent.
“I have invoice after invoice after invoice that hasn’t been paid,” she said.
Neugebauer said she’s worked with Zulily for a few years and never had problems getting paid until now.
Other vendors experiencing similar issues posted about their unpaid invoices on a Seeking Alpha story. One said they were owed more than $30,000. Another said they were offered a settlement offer from Regent after threatening legal action.
We’ve contacted Regent and Zulily’s media relations team. We’ll update this story if we get a response.
In a May press release announcing its acquisition, Regent said it planned to grow Zulily’s business in new markets. Regent’s portfolio includes Club Monaco, Dim Paris, and Redline Bicycles, among others. It has acquired more than 30 businesses since 2015.
“Regent focuses on driving transformative change by strategically repositioning businesses and pursuing opportunities that can accelerate growth and innovation,” the firm wrote in the press release.
Zulily laid off staff in June, one month after the acquisition was announced. Affected employees told GeekWire that they did not receive severance.
Regent announced its acquisition of Pearson Online Learning Services this year and reportedly laid off employees and did not provide severance, according to a report from ed-tech consultant Phil Hill.
Intermix, a clothing retailer acquired by Regent in March, also reportedly laid off workers.
Zulily was struggling under Qurate before the sale to Regent. It reported a 17% drop in revenue during the first quarter, to $192 million, and a $43 million operating loss.
Zulily also laid off employees in March to help cut costs, and had another round of layoffs a year ago. The company is still hiring new workers, according to posts on LinkedIn.
Founded in 2010, Zulily got its start by offering daily deals on products for moms and kids, and later expanded its product selection. The company went public in 2013. Qurate, the owner of QVC and HSN, paid $2.4 billion to acquire Zulily in 2015.
“We are excited to partner with the Zulily team to help the company return to its entrepreneurial roots as an independent business,” Regent Chairman Michael Reinstein said in the May press release.
Zulily is giving up its headquarters lease near the Seattle waterfront starting Jan. 1 of next year, GeekWire reported in August.
Former Nordstrom exec Terry Boyle still leads the company as president and CEO, according to LinkedIn.
