Thrasio files Chapter 11 bankruptcy, lines up $90 million DIP loan

By Sarah Lizee

Olympia, Wash., Feb. 28 – Thrasio Holdings, Inc. made a prearranged Chapter 11 filing in the U.S. Bankruptcy Court for the District of New Jersey on Wednesday, according to a press release.

The company said it has entered into a restructuring support agreement with about 81% of its revolving credit facility lenders and about 88% of its term loan lenders that will eliminate about $495 million of the company's existing debt, defer all interest payments in the first year post-emergence and infuse new capital into the company.

Thrasio said it hopes to complete the process on an expedited basis.

The company said it has received commitments from some of its lenders for up to $90 million in new financing, which is expected to provide liquidity to enable the continued operation of Thrasio's brands, support ongoing business operations and provide the company with access to new capital upon emergence to support go-forward business operations.

“Thrasio is one of the largest third-party sellers on the Amazon marketplace, and with a strengthened balance sheet and new capital, we will be better equipped to support our brands, scale our infrastructure and enable future opportunities,” Greg Greeley, chief executive officer of Thrasio, said in the release.

Thrasio intends to pay vendors and suppliers in full for goods and services provided during the cases.

In its petition, the company reported $1 billion to $10 billion in liabilities and $500 million to $1 billion in liabilities.

The top five unsecured claims are listed asset purchase agreement claims, and their amounts are undetermined. Next up is a $5.13 million customs and duties claim from U.S. Customs and Border Protection, based in Rosemont, Ill.; a $2.95 million trade debt claim from GXO Logistics Supply Chain, Inc., based in San Bernadino, Calif.; and a $1.46 million trade debt claim from Quzhou Sanhe Outdoor Equipment Technology Co., Ltd., based in QuZhou City, China.

Kirkland & Ellis LLP is serving as legal counsel, Centerview Partners is serving as financial adviser and AlixPartners LLP is serving as restructuring adviser.

Thrasio is a Walpole, Mass.-based aggregator of e-commerce brands that operates within Amazon’s third-party marketplace. The Chapter 11 case number is 24-11840.

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