Leading Amazon vendor Packable began liquidating and reported job cuts after fallen SPAC attempt
August 25, 2022: -About a year ago, online retailer Packable was preparing to go public through a particular purpose acquisition company. With the SPAC market to evaporate and the economy faltering, Packable is laying off staff and training to liquidate, says CNBC.
Packable is the firm of Pharmapacks, an online seller of health, personal care, and beauty products. Pharmapacks was established in 2010 as a single brick pharmacy in the Bronx, New York, before it became the internet and found a big home on Amazon.
In the previous September, Pharmapacks was the No. 1 Amazon seller in the U.S. However, it now ranks fifth among the site’s top sellers nationwide, according to research firm Marketplace Puls
In in a notice to employees Mon, Packable said that it was laying off 138 people, or 20% of its staff, with the 372 employees expected to be terminated as “individual winddown responsibilities are completed.” Leanna Bautista, the company’s chief people officer, has the memo.
The notice said that packable failed to secure new financing that would have enabled it to stay in business.
“We diligently got internal and external financing options but were ultimately unsuccessful,” the company stated. “Given the company has no viable financing alternatives, we are forced to cease operations, liquidate any remaining collateral, and shut down the business, including the facility you report to, added.”
High-profile investors, which include Carlyle Group, Fidelity, and Lugard Road Capital, previously secured Packable. In addition to Amazon, the company sells products on marketplaces run by Walmart, eBay, and Target.
In the year 2020, Amazon was by far Packable’s largest channel, accounting for 80% of sales, according to an investor presentation. Amazon’s third-party marketplace is becoming the centerpiece of its dominant e-commerce business, which accounts for more than half of online retail sales. With Amazon’s global reach and massive customer base, many retailers count on the company for the majority of their business and, in a few cases, the entirety.
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